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Improving agricultural microfinance through risk mitigation

The very nature of agriculture makes agricultural lending a risky business. Weather conditions, diseases, but also market access and price fluctuations make harvests and income and consequently the repayment of loans uncertain.

A good reason for financial institutions to avoid lending to farmers and most banks and MFIs still do not lend for agricultural purposes or only on a limited scale. However, agricultural production is becoming increasingly important.

The global population is expected to grow from 7 billion people today to 9 billion people by 2050, resulting in a rising demand for food and the need for increased agricultural productivity.

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Published by: Cordaid Year of publication: 2014 Type of publication: Cordaid Document: PDF 364.51 KB Download the publication