Grain as collateral
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CTA. 1998. Grain as collateral. Spore 78. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/48249
Internet URL: http://spore.cta.int/images/stories/pdf/old/spore78.pdf
The provision of loans using warehoused grain as collateral, could give Ghanaian, Ethiopian and Zambian farmers more financial breathing space in the future. The Common Fund for Commodities (CFC) is supporting a new credit programme in the three...
The provision of loans using warehoused grain as collateral, could give Ghanaian, Ethiopian and Zambian farmers more financial breathing space in the future. The Common Fund for Commodities (CFC) is supporting a new credit programme in the three countries. An important advantage is that the farmers can decide themselves when to sell the grain. Usually the crop is sold immediately after harvesting. However, prices are usually low then. Another benefit of the scheme is that there will be less seasonal variation. The CFC, an intergovernmental financial institution established by the UN, will only provide funds for technical assistance and capacity building. Overall, the programme will cost around two million $US. The loans have to be provided by local banks. The major task for the programme is to strengthen and create confidence in the storage sector according to Jonathan Coulter, agricultural economist of the National Resources Institute, who will coordinate the credit programme. He has previously worked for a similar scheme in Ghana. In that programme around 4,000 tons of cassava were stored, the harvest of some 1000 farmers. Two local banks provided the loans. Contact: Dr J.P. Coulter, Natural Resources Institute University of Greenwich Central Avenue Chatham Maritime Kent, ME4 4TB UK Fax: + 44 1634 880066 Email: J.P.Coulter@gre.ac.uk http://www.agricta.org/Spore/spore78 or Common Fund for Commodities PO Box 74656 1070 BR Amsterdam The Netherlands. Fax: + 31 20 6760231