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| less than a minute read

Fresh Thinking On Farm Finances

Farming is an old, old industry and its financial models haven't evolved much over the years. With expectations that the global population could rise as high as 10 Billion people by 2050 – which would require a 60-70% increase in global food production – the time is now to explore ways to secure the food supply. 

This article suggests that banks and financial markets must evolve to meet the needs of modern markets, and that making access to capital for both buyers and sellers is the key. It says three key actions would help to make farms more secure (despite the risks of production, distribution, and fluctuating market prices) and make it easier for buyers to bolster their supply chains:

  1. Learn from other perishable and highly bankable industries (such as energy)
  2. Evolve traditional commercial practices between buyers and sellers to move risk off of growers’ balance sheets (with long-term security)
  3. Lower the cost of capital

Click the link below for more details. 

Tags

farming, agriculture, economics, sustainable supply chain, english, highlight

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