Financial Market Assessment for the Agricultural Sector
There is growing evidence that agricultural markets are expanding, especially in developing countries. Many investors, including rural households and smallholder families, are demanding diverse financial services that help them pursue business opportunities in these markets. This global trend is making agriculture an increasingly attractive sector for financial institutions to service. This course provides an introduction to key market assessment principles and tools that can help financial institutions estimate the demand for specific agriculture finance products; identify different risk management and delivery strategies for such products; and estimate their return and cost structure given different operational scenarios. Exercises and examples provided are adapted to reflect the experience of financial institutions that have been able to increase the delivery of agricultural finance as part of their diverse portfolio and maintain it over time in the context of developing countries. Some potential areas for public-private sector collaboration to launch agricultural finance products are also discussed.
- To provide principles and references that can help students working for financial institutions to design and deliver agricultural financial products in a sustainable manner
- To illustrate critical challenges in the design and distribution of agricultural financial products for harder-to-reach clients that can concern both the public and private sector and discuss recent collaboration models between them
Familiarity with rural finance concepts
Audience / Participants
The course targets executives from financial institutions or public organizations who can use principles and tools provided to shape product design and delivery strategies that help finance agricultural activities with growth potential, or shape public interventions that facilitate access to agricultural finance products as part of the mixed bundle of financial services required by poorer rural households.