Agricultural innovation

As we know, innovation in agriculture and in finance is much broader than technology or product innovation. Process innovation, knowledge management innovation and new approaches and innovations for management systems, value chain partnerships, etc. are equally important. Such innovation can improve productivity, competitiveness, and economic growth and can play an important role in creating jobs, generating income, alleviating poverty, and driving social development. In this new section we will try to provide information on innovation in rural finance, banking, savings, funding as well as agricultural systems innovation.

Library Resources

resource title type year resource
Innovation, Agricultural Productivity and Sustainability in the United States Document 2016 English (en)

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The US food and agriculture sector is innovative, competitive and export-oriented. Changes in national and global demand offer further opportunities for US agri-food products, although climate change and other resource constraints could create additional challenges, in particular in some regions. Maintaining high productivity growth, while improving the sustainable use of resources will require further innovation. In a policy environment generally favourable to investment  and innovation, the strong US agricultural innovation system is expected to continue to create innovations that will be widely adopted, to the extent that these can be widely accepted.

Innovation, Agricultural Productivity and Sustainability in the United States  -  English (en)

Author OECD
Publisher OECD
Pari
Number of Pages 268 pp.
Primary Language English (en)
Region / Country Global
Keywords Agriculture, Agricultural Innovation, Agricultural Investment
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Public-Private Partnerships for Agricultural Innovation Report 2016 English (en)

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Public-Private Partnerships (PPPs) are increasingly used in agricultural innovation to leverage public funds, enhance efficiency, and improve the adaptation of innovation to demand so as to foster wider and faster diffusion. For governments, PPPs for innovation are but one policy option, whose costs and benefits need to be compared with those of other options. Governments have put in place a policy and regulatory environment to facilitate the development of PPPs for innovation, including financing mechanisms and Intellectual Property (IP) protection. Most programmes are not specific to the food and agriculture system, but apply to the economy-wide innovation system. The main a priori conditions for forming a successful partnership between public and private participants are existence of common objectives, sharing of mutual benefits, and complementarity of human and financial resources. Institutional arrangements need to be clear, but the degree of formality can vary. Elements of good governance include setting clear objectives and rules, and implementing regular monitoring and evaluation that use well-established, open and competitive processes to select PPPs for public participation. Transparency is desirable at all stages of implementation. Improving partners’ capacity to design, manage and participate in PPPs is an important factor of success, and is particularly relevant for agricultural innovation.

PPP for Agricultural Innovation  -  English (en)

Author Catherine Moreddu
Publisher OECD
Paris, France
Number of Pages 56 p.
Primary Language English (en)
Region / Country Global
Keywords Agricultural Innovation, Public-Private Partnership, PPP, Governance
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Innovations for Inclusive Agricultural Finance and Risk Mitigation Mechanisms Case Study 2016 English (en)

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This case study documents an innovative model for providing financial services to poorer rural households dependent on agriculture – the Tamwil El Fellah (TEF) model developed by the Groupe Crédit Agricole du Maroc (GCAM – the Morocco Agricultural Credit Group). TEF has built on the long-standing experience of financing the agriculture sector and the network of agencies and human resources of GCAM, putting in place its own business model with risk management mechanisms adapted to its specific client segment: farmers with small and medium-scale agribusinesses. This study aims to highlight important principles that can be applied by financial institutions and supporting organizations to promote inclusive rural and agricultural financial services the context of developing countries.

Innovations for Inclusive Agricultural Finance and Risk Mitigation Mechanisms  -  English (en)

Author Juana Ramirez and Emilio Hernandez
Publisher FAO
Rome, Italy
Number of Pages 33 pp.
Primary Language English (en)
Region / Country Global, Africa, Northern Africa
Morocco
Keywords Agricultural Innovation, Agricultural Finance, Risk Management
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Servicios Financieros con enfoque de cadena de Valor Fideicomiso recursos para mi tierra Case Study 2015

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El año  2008 se estableció  el Programa  Honduras-Recursos  para  Mi Tierra (HRPMT) a partir de la creación de una plataforma de servicios financieros para productores hortícolas y frutícolas que opera sobre la base de un fideicomiso de administración e inversión establecido  en un banco privado. En base a ello HRPMT logró estructurar  diversas cadenas  agrícolas de valor con una multiplicidad de actores tres de los cuales (Supermercados La Colonia, Banco FICOHSA y la Fundación para el Desarrollo Empresarial Rural –FUNDER) actúan como fideicomitentes. Esta integralidad  de actores  e interacciones  financieras y comerciales operan  como un sistema de incentivos que cohesiona  el modelo, lo hace rentable  para todas las partes y en la mayoría de los casos auto sostenible. El programa además se caracteriza una política de bajo costo de servicios financieros. 

Author Young, Robin, Alborta, Pablo, Monje, Guillermo, Quirós, Rodolfo, Palancares, Laura /Fondo Multilateral de inversiones FOMIN
Publisher FOMIN
2015
Number of Pages 27
Primary Language Spanish (es)
Region / Country Global
Keywords Agricultural Innovation
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Financiamiento forestal- Grupo ALLIANCE y Grupo Financiero de Occidente-Guatemala Case Study 2015

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El documento describe la iniciativa iniciada el 2008 ante a) las dificultades que enfrentaban comunidades y empresas forestales para obtener financiamiento para extraer y procesar madera en condiciones competitivas y b) el desconocimiento del sector financiero guatemalteco sobre la silvicultura y las limitaciones jurídicas de las propiedades entregadas en concesión. Para realizar diseñar y ejecutar el proyecto primero se constituyó una alianza entre RA y la Financiera de Occidente (FIDOSA). Se desarrolló un conjunto de servicios financieros como préstamos para empresas comunitarias constituidas por cientos de familias de bajos ingresos, lo cual permitió mayor profundización del acceso. Se aplicó un enfoque integral de cadena de valor que incluía asistencia técnica (AT), servicios de desarrollo empresarial y mercado local e internacional para asegurar la colocación de la producción y los servicios financieros. Pero además, se desarrolló un préstamo para reforestación con árboles productores de caucho.  

Author Young, Robin, Alborta, Pablo, Monje, Guillermo, Quirós, Rodolfo, Palancares, Laura/Fondo Multilateral de inversiones FOMIN
Publisher FOMIN
Number of Pages 30
Primary Language English (en)
Region / Country Global, Americas, Central America, South America
Guatemala
Keywords Agricultural Innovation
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Catalogue des innovateurs - Salon de l'Innovation 2015 Document 2015 French (fr)

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Les nouvelles technologies ont permis ces dernières années d’entrevoir de nouvelles perspectives pour faire progresser l’inclusion financière et l’accès aux services de base sur le continent africain. Ces innovations connaissent une diffusion inégale sur le continent Africain et la SAM est une occasion unique de pouvoir faire découvrir à un large public les innovations les plus pertinentes pour le monde rural et ainsi accélérer leur diffusion pour un meilleur bien-être des populations rurales africaines.

Le Salon de l’Innovation a offert un espace privilégié de rencontre aux innovateurs qui ont disposé de stands d’exposition. Les innovations parmi les plus pertinentes pour le monde rural ont fait l’objet d’une présentation suivie d’un échange avec le public. 

 

Lien vers la publication  -  French (fr)

Author ADA
Publisher microfinance-afrique
Number of Pages 34
Primary Language French (fr)
Region / Country Global, Africa, Eastern and Central Africa, Northern Africa, Southern Africa, Western Africa
Keywords Innovation, Finance rurale, Systèmes d'information et de gestion, Irrigation, Microfinance plus
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Herramientas de Análisis y gestión de riesgo Financiera Edificar – Perú Case Study 2015

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El documento describe como la Financiera EDYFICAR decidió innovar en el microcrédito agropecuario a partir de la revisión y rediseñó de su metodología de microcrédito. EDYFICAR creó herramientas para el análisis y gestión de riesgo y seleccionó y preparó a su personal para incorporar el microcrédito agropecuario a sus servicios. Este caso muestra integralmente el proceso de innovación y modernización de las Agencias Compartidas para ofrecer microcréditos agropecuarios. La metodología se valió de herramientas de análisis para determinar los riesgos que afectan la capacidad de pago de los clientes y así orientar la estrategia  de intervención en el contexto rural. Estas herramientas incluyen: una matriz de diagnóstico  de zonas, una matriz de riesgos agropecuarios, calendarios agropecuarios y fichas técnicas de cada cultivo. El producto crediticio como tal incluye la personalización  del plan de pagos adecuado para el flujo de caja de cada cliente en función a la proyección de sus diversas actividades. Adicionalmente, la incorporación de la innovación comprendió oficiales de crédito capacitados en la metodología del crédito especializada y adecuaciones al sistema de información que permitieran el manejo de los planes alternativos e irregulares de amortización de los créditos.

Author Young, Robin, Alborta, Pablo, Monje, Guillermo, Quirós, Rodolfo, Palancares, Laura /Fondo Multilateral de inversiones FOMIN
Publisher FOMIN
Number of Pages 29
Primary Language Spanish (es)
Region / Country Global
Peru
Keywords Agricultural Innovation, Agricultural Risk
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Seguro Agrícola comercial LA Positiva seguros Case Study 2015

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EL trabajo presenta una innovadora estrategia para hacer frente a los factores que obstaculizan la oferta privada de seguros agrícolas hacia  pequeños, medianos y grandes  productores, implementada por La Positiva por medio de un seguro agrícola comercial destinado a cubrir pérdidas en la producción agrícola. Este instrumento financiero se canaliza a través de instituciones financieras que otorgan créditos agrícolas y se activa cuando las pérdidas resultantes de fenómenos climáticos superan el 50% del rendimiento promedio del cultivo en la zona donde opera el agricultor afectado. En caso de siniestro, el seguro cubre el pago por el saldo del crédito a la entidad  financiera y el remanente se deposita  en la cuenta del productor para que este pueda reactivar su producción y continuar con su actividad agrícola.

Author Young, Robin, Alborta, Pablo, Monje, Guillermo, Quirós, Rodolfo, Palancares, Laura /Fondo Multilateral de inversiones FOMIN
Publisher FOMIN
Number of Pages 23
Primary Language Spanish (es)
Region / Country Global
Peru
Keywords Agricultural Innovation
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Fondos de inversión rural (Fir) Asociación Boliviana Para el Desarrollo Rural (Pro-Rural) Paper 2015

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El documento describe el Fondo de Inversión Rural (FIR) que es una innovación para el financiamiento agrícola que combina el conocimiento de las asociaciones de agricultores con la experiencia de una institución microfinanciera (IMF) para reducir costos y riesgos crediticios, y mejorar las condiciones crediticias de los pequeños agricultores. El mecanismo  fue conceptualizado, diseñado  y lanzado por la Asociación Boliviana para el Desarrollo Rural  PRO-RURAL y consiste en una sociedad  accidental  constituida entre  esta última y una organización de productores con el fin de realizar una inversión de riesgo compartido dirigida a implementar conjuntamente un programa  de microcrédito (FIR) que brinde acceso preferencial a los miembros de esta organización de agricultores.

Author Young, Robin, Alborta, Pablo, Monje, Guillermo, Quirós, Rodolfo, Palancares, Laura /Fondo Multilateral de inversiones FOMIN
Publisher FOMIN
Number of Pages 30
Primary Language Spanish (es)
Region / Country Global, Americas, Central America, South America
Bolivia
Keywords Agricultural Innovation
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Microcrédito Warrant FONDO de Desarrollo Comunal (FONDECO) – Bolivia Case Study 2015

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El documento describe el Microcredito Warrant (MCW) creado por el Fondo de Desarrollo Comunal (FONDECO) -asociación boliviana civil sin fines de lucro y especializada en microfinanzas- como una solución financiera para sus prestatarios productores de arroz, mismos que enfrentaban problemas de pago a sus acreedores (proveedores de servicios durante la siembra, cultivo y cosecha) una vez concluido el periodo de cultivo de este grano. El MCW fue diseñado  para que los productores una vez acreditados por FONDECO accedan a financiamiento de forma inmediata, dejando como única garantía el arroz que almacenan en ingenios.  

Author Young, Robin, Alborta, Pablo, Monje, Guillermo, Quirós, Rodolfo, Palancares, Laura /Fondo Multilateral de inversiones FOMIN
Publisher FOMIN
Primary Language Spanish (es)
Region / Country Global
Bolivia
Keywords Agricultural Innovation
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Direct-to-Farmer Finance: Innovation Spaces Playbook Paper 2014

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Innovation can help direct-to-farmer finance providers better serve farmers by addressing the challenges associated with direct-to-farmer lending. Existing challenges – such as lending risks and service delivery – are exacerbated at scale; investing in innovation can help direct-to-farmer finance providers scale up to more quickly and effectively meet the vast global demand for smallholder finance.

Through a collaborative research, design, and ideation process involving farmers, donors, finance providers, and more, the Initiative for Smallholder Finance has identified five opportunities for direct-to-farmer finance innovation. Each of the innovation spaces below suggests compelling new ways that direct-to-farmer finance providers can build off current experimentation in the sector to better serve smallholder farmers.

Author The Initiative for Smallholder Finance
Publisher The Initiative for Smallholder Finance
Number of Pages 30 pp.
Primary Language English (en)
Region / Country Global
Keywords Innovation, smallholder finance, finance, Investment
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Effectiveness of innovation grants to smallholder agricultural producers. An explorative systematic review Paper 2013

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Grants for agricultural innovation are common but grant funds specifically targeted to smallholder farmers remain relatively rare. Nevertheless, they are receiving increasing recognition as a promising venue for agricultural innovation. They stimulate smallholders to experiment with improved practices, to become proactive and to engage with research and extension providers. The systematic review covered three modalities of disbursing these grants to smallholder farmers and their organisations: vouchers, competitive grants and farmer-led innovation support funds. The synthesis covers, among others, innovation grant systems in Malawi (Agricultural Input Subsidy Programme), Latin America (several Challenge Funds for Farmer Groups), Uganda (National Agricultural Advisory Services ), and Colombia (Local Agricultural Research Committees - CIAL).

The systematic review aims to synthesize the available literature in order to elaborate under what conditions innovation funds tend to be effective in facilitating innovation and benefiting the poor and women in developing countries.

Author Ton G, de Grip K, Klerkx L, Rau M-L, Douma M, Friis-Hansen E, Triomphe B, Waters- Bayer A, Wongtschowski M
Publisher EPPI-Centre
Number of Pages 115 pp.
Primary Language English (en)
Region / Country Global
Keywords Innovation
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Innovative Agricultural Finance and Risk Management Report 2012 English (en)

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The publication looks into the issue of risk management in agricultural finance in transition countries and it focuses on one particularly important action area: how can various agricultural finance and risk management products, mechanisms and institutions that are relatively new to the transition region, enhance the region’s food production, processing and trading systems. These products, mechanisms and institutions include market-based price risk management, weather index insurance, structured finance, warehouse receipt (WHR) systems and commodity exchanges, among others. The paper aims to identify how international financial institutions can most effectively leverage their investments and technical assistance programmes to boost the adoption and scaling- up of such products, mechanisms and institutions.

working paper  -  English (en)

Innovative Financing for Agriculture, Food Security and Nutrition Report 2012 English (en)

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This report is the result of a collective work carried out by the high-level expert Committee and a writing team commissioned by the Task Force on Innovative Financing for agriculture, food security and nutrition created by the Leading Group on Innovative Financing for Development at its 9th plenary session in Mali (Bamako) in June 2011.

The report includes an analysis of the need for innovating financing dedicated to the agricultural, food security and nutrition sector, a critical review of existing and possible mechanisms and a proposed selection of avenues for the development of such mechanisms on the basis of the expertise of a high-level Committee of experts, literature review, meetings with relevant professional actors and an on-line consultation on the Global Forum on food security and nutrition (FSN Forum).

The report explores how innovative financing mechanisms can benefit agriculture, food security and nutrition focusing on three points:

How they bring new resources as compared to traditional ODA (innovating by resources);

How they catalyze private investment through adequate catalyzing tools (innovating by use);

And how they promote new approaches for the scaling-up of innovative tools.

report  -  English (en)

Agricultural Innovation Systems: An Investment Sourcebook Book 2012 English (en)

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The publication draws on the emerging principles of agricultural innovation system (AIS) analysis to identify, design, and implement investments, approaches, and complementary interventions that appear most likely to promote agricultural innovation and equitable growth. While the sourcebook discusses why investments in AISs are becoming so important, it gives most of its attention to how specific approaches and practices can foster innovation in a range of contexts. The information in this sourcebook derives from approaches that have been tested at different scales in different contexts. The book provides a menu of tools, operational guidance, examples, and practical lessons.

investment sourcebook  -  English (en)

Innovative Agricultural SME Finance Models Report 2012 English (en)

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IFC produced this report on behalf of the G20 Global Partnership for Financial Inclusion.  The report identifies innovations that can help bankers in developing countries to finance agricultural small and medium enterprises.  The report highlights the most promising examples of innovative financing, risk mitigation and distribution models drawn from a stocktaking exercise of 100 global cases. This report primarily addresses private sector financial institutions in emerging markets and is designed to complement the November 2011 IFC report “Scaling Up Access to Finance for Agricultural SMEs – Policy Review and Recommendations,” which focused on the policy framework conducive to agricultural SME finance.

innovative agricultural sme finance models  -  English (en)

Author IFC and GPFI
Publisher IFC
Number of Pages 116 pp.
Primary Language English (en)
Region / Country Global
Keywords Agricultural Finance, Agricultural Innovation, Small And Medium Enterprises (Smes)
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Designing and Implementing Agricultural Innovation Funds: Lessons from Competitive Research and Matching Grant Projects Paper 2010

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Paper describes experiences with the two main innovation funds that the World Bank has used to fund agricultural innovation—competitive research grants and matching grants—and offers lessons and guidelines for designing and implementing them. Many countries are using innovation funds in the agricultural sector to provide incentives for private sector innovation and entrepreneurship, including business models and approaches which support rural producers.

Author The World Bank
Publisher The World Bank
Number of Pages 94 pp.
Volume / Issue# Report No. 54857-GLB
Primary Language English (en)
Region / Country Global
Keywords Agricultural Innovation, Funds
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Innovaciones financieras para el sector agropecuario Document 2010

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El documento presenta una sistematización de la experiencia del Programa de Apoyo al Sector
Financiero de la Fundación PROFIN y la evolución del mismo durante 13 años. El trabajo hace énfasis en el análisis de la cuarta fase de aplicación del Programa, los temas en los que se han trabajado y los resultados  alcanzados durante la fase cuarta fase del mismo. El documento  pone en evidencia como a partir del acercamiento a pequeños productores rurales se visibilizo la necesidad de servicios financieros y la definición de innovaciones financieras que se adecuen a las características del sector que las demanda. Asimismo, explica cómo la articulación entre servicios financieros y no financieros contribuyó a la obtención de mayores ingresos para los pequeños productores y la mejora en la gestión de riesgos de sus actividades productivas. 

 

Author Aliaga, Irina/PROFIN
Number of Pages 78
Primary Language Spanish (es)
Region / Country Global
Bolivia
Keywords Innovaciones financieras
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Innovations in Rural and Agriculture Finance Paper 2010 English (en)

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Rural and agricultural finance innovations have significant potential to improve the livelihoods and food security of the poor. Although microfinance has been widely studied, a large knowledge gap still exists on the nuts and bolts of expanding access to rural and agricultural finance. Briefs on innovations in providing financial services to rural households have been collected in this “IFPRI’s 2020 Vision Initiative” document with the aim to narrow this knowledge gap. Also, case examples of successful rural and agricultural finance innovations in Africa, Asia and Latin America have been included in this collection.

innovations in rural and agriculture finance  -  English (en)

Author Kloeppinger-Todd, R.; Sharma, M.
Publisher International Food Policy Resarch Institute (IFPRI)
Number of Pages 34 pp.
Primary Language English (en)
Region / Country Global
Keywords Agricultural Finance, Rural Finance
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Innovative financing for sustainable small and medium enterprises in Africa Report 2008

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This report is the result of an international workshop on ‘Innovative Financing for Sustainable Small and Medium Enterprises in Africa’, jointly undertaken by the United Nations Environment Programme Finance Initiative (UNEPFI) and the WWF, with support from the Geneva International Academic Network (RUIG-GIAN) and the International Organizations MBA at the University of Geneva. This workshop convened experts in small and medium enterprise (SME) financing and sustainability coming from public, private and philanthropic investment communities, as well as Africa-based organizations working on SME financing. Parallel research was conducted on the topics of ‘Financing Mechanisms for Sustainable SMEs’, ‘What is a Sustainable SME?’ and ‘Risk Mitigation Mechanisms for Investing in Sustainable SMEs’ conducted respectively by UNEPFI, WWF and DeRisk advisory Services, a development finance intermediary. Drawing on the research of WWF and DeRisk, aims of this report are three-fold:

  1. Draw the attention of development, philanthropic and private finance communities to the opportunities in investing in sustainable SMEs, and provide them with a better understanding of the issues surrounding this subject.
  2. Highlight innovative financing models, through illustrative case-studies of funds investing in sustainable SMEs in Africa.
  3. Present the inputs received from the workshop participants on how to best scale innovative models and create an environment conducive for increased private investment.

The report is intended for investors, fund managers, financial institutions, SMEs and policy makers.

Enhancing Agricultural Innovation: How to Go Beyond the Strengthening of Research Systems Paper 2006

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This paper takes stock of real-world innovation systems to assess the usefulness of the innovation systems concept for guiding investments in agricultural technology development and economic growth. This paper seeks to assess the usefulness of the innovation systems concept in guiding investments to support the development of agricultural technology. To that end, it develops an operational agricultural innovation systems concept for the Bank’s client countries and collaborators. This paper does not challenge the importance of investing in science and technology capacity, which is well recognized in innovation systems theory. Rather it focuses on the additional insights and types of interventions that can be derived from an innovation systems perspective and that can influence the generation and use of science and technology for economic development.

Innovative Financial Services for Rural India Report 2003

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This paper outlines an integrated crop loan insurance and risk management product for Indian rural finance and agriculture. This monsoon insurance for crop loans—combined with the risk management account proposed in this paper—could significantly improve farmers’ access to crop loans and their capacity to manage risk. The paper is organized into the following sections:

1.the first section defines the problem of access to financial services, how monsoon risk affects that access and how the India government is currently addressing the problem;

2.the second section describes the concept of monsoon-indexed lending and risk management accounts for smallholders; and

3.the final section describes the findings of a modeling exercise applying the service in India.

Author Ulrich Hess
Publisher The Agriculture & Rural Development Department of the World Bank
Washington, DC; USA
Number of Pages 38 pp.
Primary Language English (en)
Region / Country Global
Keywords Innovations, Crop Insurance, Financial Services, Risk Management
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