Farmers and farmers’ associations in developing countries and their use of modern financial instruments

Lamon Rutten

Finance from EconWPA

Abstract: This paper starts with an overview of the current literature on the cost of price risk exposure to developing country farmers. It then discusses market-based price risk management instruments (such as futures and options) that can be used by farmers, as well as various mechanisms through which farmers' associations can facilitate farmers' access to price risk management tools as well as lower-cost financing (using warehouse receipt finance, repos and other structured financings). The experiences with use of such modern financial tools by farmers in several developing countries (Brazil, Colombia, Guatemala, India, Malaysia, Mexico, Philippines, Uganda) are described. The report concludes with a discussion of the practicalities of farmers' associations starting to use such financial instruments, including the potential of new technologies such as smart cards.

Keywords: farmers; structured; finance; warehouse; receipts; price; risk; management (search for similar items in EconPapers)
JEL-codes: Q14 G20 D80 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn and nep-mfd
Date: 2003-01-03
Note: Type of Document - pdf; pages: 35; figures: included. pdf file

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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpfi:0301001

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