Financing Agriculture Forum 2015: Presentations
More than 150 agricultural banking professionals gathered for the AgriFin Financing Agricultural Forum held in Istanbul from May 11th through the 15th, 2015. Participants discussed opportunities for banks to use agricultural value chains to facilitate and expand lending to agriculture in a profitable and secure manner.
Throughout the event, leading banks from across the globe shared their expertise, know-how, processes and tools related to Agricultural Value Chain Finance (VCF). Attendees from over 50 countries active in agricultural finance shared lessons and built relationships with their peers.
Key themes that arising from the Forum are:
- Agricultural Value Chain Finance (VCF) offers significant opportunities for banks to expand their lending to the agricultural sectors by using aggregators to reduce transaction costs, while reducing risk by overcoming asymmetrical informational hurdles.
- There are many ways for banks to support agricultural enterprises and large and small farmers, including direct lending relationships. Value chain finance is just one mechanism that allows banks to reach smallholders and provide critical services to them.
- Introducing VCF is not just about getting the technical aspects of such lending right, it requires buy-in from across the institution, not least the banks senior management who need to support it and provide the space for it to take shape and grow.
- It takes time to get it right – there is no one model, but a variety of means of making this work, and all institutions will need to approach this with the knowledge that they may not get it right first time, but will have to adapt and evolve as they grow their knowledge and learning.
- Often the demand for VCF doesn’t come from the borrowers (the farmers) but from large aggregators and off-takers, who are existing clients of the banks. VCF adds the opportunity to provide value-add to existing clients, assisting them in strengthening their value chain by supporting their suppliers and partners.
- VCF is not just about lending, but it also offers great opportunities for banks to cross-sell other products and services to their clients.
Please click on the link below for the presentations.