Financial innovation in agriculture

Mori Margherita: Financial innovation in agriculture. In: Agrár- és vidékfejlesztési szemle, (6) 1. pp. 18-25. (2011)

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The process of financial innovation is a patchy phenomenon, far from exhausted, that has left some areas of the agribusiness almost unaffected. Looking at the financial arena as a huge laboratory, a set of new tools could be taken advantage of, in order to exploit the potential of finance and hence to speed up the flight to quality in agriculture, well beyond the scope of agricultural lending; these tools include weather derivatives, cat bonds, micro-finance, mutual guarantee institutions, and the JEREMIE (Joint European Resources for Micro to Medium Enterprises) initiative. After identifying the strategic areas of the financial system that are likely to prove most beneficial to the agribusiness, the toughest task has to do with making all relevant information available to the small enterprises prevailing in agriculture, not to mention the micro ones. A success story has been developed by the Louisiana Business & Technology Center in Baton Rouge (LA, USA) after Hurricane Katrina: a mobile classroom was set up to reach the unserved parishes in rural Louisiana with counselling, encompassing managerial finance, and also to be utilized as a business incubator on wheels. The use of this 30-seat converted semi-trailer entails an innovative way of delivering financial assistance and services: therefore, it can be taken for a meaningful change in the place factor of the marketing mix traditionally resorted to by banks and, as such, may fit into the concept of financial innovation. The ambitious results attained over there do not only give satisfaction for international interest, but also sound like an invitation to replicate them by adopting this case study as a contribution to foster long term, sustainable growth in agriculture.

Item Type: Article
Heading title: Plenary session
Journal or Publication Title: Agrár- és vidékfejlesztési szemle
Date: 2011
Volume: 6
Number: 1
ISSN: 1788-5345
Page Range: pp. 18-25
Language: English
Publisher: Szegedi Tudományegyetem Mezőgazdasági Kar
Place of Publication: Hódmezővásárhely
Event Title: Traditions, innovation, sustainability (2011) (Hódmezővásárhely)
Related URLs:
Uncontrolled Keywords: Mezőgazdaság - pénzgazdálkodás, Vidékfejlesztés, Pénzügyi innováció
Additional Information: Bibliogr.: p. 24-25. ; összefoglalás angol nyelven
Subjects: 05. Social sciences
05. Social sciences > 05.02. Economics and business
05. Social sciences > 05.07. Social and economic geography
Date Deposited: 2022. Jun. 29. 09:50
Last Modified: 2022. Jun. 29. 09:50

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