Agricultural Finance and Business Management

Agricultural finance involves sourcing capital required to address challenges in the food production chain. These challenges are related to food loss and wastages, climate change, adoption of new and improved technologies, and supply-chains issues. Agricultural value-chain finance is recommended as the best approach to financing activities from production to marketing. The approach fosters linkages between relevant institutions by assessing risks, distribution channels, and opportunities. It is also specific and tailored to fit the peculiarities of different agricultural value-chains. Finance remains a setback to agricultural development especially in developing countries. It is estimated that over $80billion investment is required for agriculture to meet the world’s growing food needs, and a huge portion of this is expected from the private sector. The International Finance Corporation of the World Bank currently offers a range of finance products to farmers across the world.

Good business management structures involve all on- and off-farm activities required to efficiently allocate inputs including finance in production, manufacturing, and marketing of agricultural products to consumers. Without solid management structures, business investments become futile. Tengrain Science is actively involved in initiating public-private partnerships targeted accessing finance and developing good business structures.