THE ROLE OF CREDIT IN THE FARMER SUPPORT PROGRAMME: IS IT THE KEY TO SUCCESS?

This paper concentrates on the credit element of Farmer Support Programmes (FSP) and the financial environment in which FSP credit is applied with a view to assess the importance of the credit component in the FSP. First, the theory on rural financial markets and intermediation is briefly reviewed. This is followed by an application to the FSP. The paper concludes with some policy implications of the findings. The main points that FSP financial policy should incorporate are: avoid loan subsidies and targeting; mobilise deposits; charge positive real rates of interest; avoid concessionary discount lines; reduce transaction costs; and emulate informal finance.


Other Titles:
Die rol van krediet in die Boerdery-ondersteuningsprogram: Is dit die sleutel tot sukses?
Issue Date:
1993-12
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/267598
ISSN:
0303-1853
Language:
English
Published in:
Agrekon, Volume 32, Issue 4
Page range:
187-195




 Record created 2018-02-01, last modified 2018-04-02

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