IMPORTANCE OF PUBLIC WAREHOUSE SYSTEM FOR FINANCING AGRIBUSINESS SECTOR

The aim of this study was to determine the economic viability of the use of warehouse receipts for the storage of wheat and corn, based on the analysis of trends in product prices, storage costs in public warehouses and interest rate of loans against warehouse receipts. Agricultural producers are urged to sell grain at the harvest time when the price of agricultural products is usually lowest, mostly because of their needs for financial sources. Instead of selling products, farmers can store them in the public warehouses and use shorttime financing by lending against warehouse receipt with usually lowest interest rate. In following months, farmers can sell products at higher price and repay short-term loan. This study showed that strategy of using public warehouses and postponing the sale of grains after harvest is profitable strategy for agricultural producers.


Variant title:
ZNAČAJ SISTEMA JAVNIH SKLADIŠTA ZA FINANSIRANJE AGRO-BIZNIS SEKTORA
Editor(s):
Cvijanovic, Drago
Issue Date:
2014-12
Publication Type:
Journal Article
DOI and Other Identifiers:
UDC 338.43:63 CIP 33:63(497.11) ISSN 0352-3462 COBISS.SR-ID 27671 (Other)
Record Identifier:
http://ageconsearch.umn.edu/record/196667
PURL Identifier:
http://purl.umn.edu/196667
Published in:
Economics of Agriculture, Volume 61, Number 4
Page range:
929-943
Total Pages:
15
JEL Codes:
Q13; Q14; G18
Note:
Original scientific paper
Series Statement:
Economics of Agriculture 4/2014
UDC: 347.767:336.77.067.21




 Record created 2017-04-01, last modified 2018-01-22

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