Better practices in agricultural lending
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The sustainable provision of credit and general financial services to farmers and rural inhabitants in developing countries has proved to be a difficult task. The history of such endeavours is littered with failures. This has led to a decline in agricultural credit supply for borrowers. Such a reduction contrasts with the increased demand following structural adjustment reforms. This publication explores how the new microfinance technologies in urban areas of developing countries c an provide useful models for similar operations in rural areas for agricultural production lending. The problems of high risks and costs are specific issues for agricultural finance. These are elaborated in this edition.