Training Course on Agricultural Value Chain Finance

About the Course

Agriculture plays a pivotal role in sustainable development and poverty reduction in developing countries. However, the success of this sector is highly hampered by lack of finance. As a result, the sector is largely under-developed. Generally, agricultural credit is costly and inequitably distributed, severely limiting smallholder farmers ability to compete. This course provides insights on how the right amount of financing can be acquired, particularly in the context where formal financial service institutions may be unwilling to finance agricultural value chains. In this course, participants will learn how value agricultural value chain finance offers an opportunity to reduce the cost and risk of financing at the advantage of smallholder farmers.

Target Participants

This course is useful for agricultural professionals who are involved in value chain development/empowerment, with specific target on smallholder farming.

What you will learn

By the end of the course the learner should be able to:

• Understand how value chain finance offers an opportunity to reduce cost and risk in financing and reach out to smallholder farmers
• Understand the competitiveness and risks in the agricultural sector as a whole and to craft products that best fit the needs of the business in the chain
• Understand value chain business model and their application in the agricultural value chain.
• Understand the various value chain finance instruments in agriculture
• Understand the impact of technological innovation in value chain finance.

Course duration

5 days

Course Outline

Module 1: Understanding agricultural value chain finance context

• Definition of value chain finance
• Principles and key approaches of agri value chain financing
• Reasons for increased interest in value chain finance in agriculture
• The concept of value chain finance in agriculture
• Agricultural value chain finance as an approach
• Opportunities in Agri value chain finance
• Agricultural value chain financing mechanisms.
• Importance of green financing and models to facilitate green financing. 

Module 2: Value chain business models

• Produce-driven value chain models
• Buyer-driven value chain models
• Facilitated value chain models
• Integrated value chain models
• Flexible Agri and Green credit modelling, structuring-terms, conditions, pricing, collection models, covenants, collateral arrangement among others.
• Loan structuring – value chain cashflow cycle, market availability, development stage among others.
• Case study 1: Farm Concern International – Commercial village approach

 Module 3: Agricultural value chain finance instruments

• Product financing
• Receivable financing
• Physical asset collateralization
• Risk mitigation products
• Financial enhancements
• Credit analysis in Agricultural Value Chain Lending Mechanism.
• Risk management models in Agricultural Value Chain lending
• Case study 2: One example of financial institution in Rwanda 

Module 4: Strategy and design recommendations of agriculture value chain finance programmes

• Design and implementation of agricultural value chain finance
• Defining a value chain finance strategy and business model
• Recommendations for partner selection and facilitation
• Capacity-building and facilitation support
• General principles and insights for sustainable agricultural development
• Loan monitoring and recovery using Agricultural Value Chain lending Mechanisms.
• Data collection skills and management by use of standard monitoring and evaluation tools and processes. 

Module 5: Innovations in agricultural value chain finance

• Value chain innovation
• Financial innovations
• Technological innovations
• Infrastructural innovation
• Policy and public sector innovations
• Case study: Value chain finance innovations in one of the financial institutions in South Africa

Training Approach: Agricultural Value Chain Finance

This course is delivered by our seasoned trainers who have vast experience as expert professionals in the respective fields of practice. The course is taught through a mix of practical activities, theory, group works and case studies.

Training manuals and additional reference materials are provided to the participants.

Certification

Upon successful completion of this course, participants will be issued with a certificate.

Tailor-Made Course on Agricultural Value Chain Finance

We can also do this as a tailor-made course to meet organization-wide needs. Contact us to find out more [email protected]

Payment

The training fee covers tuition fees, learning materials, and training venue. Accommodation and airport transfer are arranged for our participants upon request.

Payment should be sent to our bank account before start of training and proof of payment sent to [email protected]