Discussion Papers

[vc_row][vc_column width=”1/2″][vc_btn title=”Back” style=”flat” color=”default” size=”sm” i_icon_fontawesome=”fa fa-arrow-left” add_icon=”true” link=”url:https%3A%2F%2Fcids.up.edu.ph%2Fpublications%2Fdiscussion-papers%2F2018-series%2F18-006%2F|||”][/vc_column][vc_column width=”1/2″][vc_btn title=”Next” style=”flat” color=”default” size=”sm” align=”right” i_align=”right” i_icon_fontawesome=”fa fa-arrow-right” add_icon=”true” link=”url:https%3A%2F%2Fcids.up.edu.ph%2Fpublications%2Fdiscussion-papers%2F2019-series%2F2019-01%2F|||”][/vc_column][/vc_row][vc_row][vc_column][vc_custom_heading text=”UP CIDS DISCUSSION PAPER 18-007″ font_container=”tag:p|font_size:16|text_align:left|color:%23bababa|line_height:1″ google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:400%20regular%3A400%3Anormal” css=”.vc_custom_1552553235621{margin-bottom: 4px !important;}”][vc_custom_heading text=”Breaking barriers in agriculture financing: Enhancing the resilience of agriculture value chains through interlinked inclusive financing models” font_container=”tag:h2|font_size:24|text_align:left|line_height:1.25″ google_fonts=”font_family:Oswald%3A300%2Cregular%2C700|font_style:400%20regular%3A400%3Anormal” css=”.vc_custom_1552553258946{margin-top: 0px !important;}”][/vc_column][/vc_row][vc_section css=”.vc_custom_1552539323998{margin-bottom: 0px !important;}”][vc_row][vc_column width=”1/4″][vc_column_text css=”.vc_custom_1552539347581{margin-bottom: 0px !important;}”]Author[/vc_column_text][vc_column_text]Program[/vc_column_text][/vc_column][vc_column width=”3/4″][vc_column_text css=”.vc_custom_1552553280661{margin-bottom: 0px !important;}”]Jane Lynn D. Capacio, Emmanuel S. de Dios, and Rob Van Tulder[/vc_column_text][vc_column_text]Program on Escaping the Middle-Income Trap: Chains for Change[/vc_column_text][/vc_column][/vc_row][/vc_section][vc_row css=”.vc_custom_1552539651908{margin-bottom: 0px !important;}”][vc_column width=”1/4″ css=”.vc_custom_1552539611602{margin-bottom: 4px !important;}”][vc_column_text css=”.vc_custom_1552539664997{margin-bottom: 0px !important;}”]Abstract[/vc_column_text][/vc_column][vc_column width=”3/4″ css=”.vc_custom_1552539659051{margin-bottom: 0px !important;}”][vc_column_text]In the Philippines, smallholders need agriculture financing while banks are penalized for insufficiently lending to the agrarian and agriculture sectors. This finance gap proves difficult to fill for a number of reasons: (a) limited understanding of the conditions under which smallholders can become and stay competitive; (b) limited appreciation of the resilience of value chains; (c) difficulty in assessing and mitigating risks at all levels of value chains; and (d) non-aligned business model of financial
institutions with the demands of inclusive value chains. Drawing from EMIT C4C’s action research on the Farmer Entrepreneurship Program (FEP) of the Jollibee Group
Foundation and the SKK Rice Processing Center, a social enterprise partner of PinoyME Foundation, this paper unearths how formal financing flow to smallholders in inclusive and competitive value chains. In the models, interlinked transactions—contracts where smallholders borrow resources for production capital on condition that they will sell part of their harvest to their cooperative or off-taker—were utilized. Unlike trader-lenders who also use interlinked transactions, “interlinked inclusive financing” has mechanisms that improve the financial institutions’ assessment of lending costs and risks. This paper offers key recommendations for banks, government agencies, and other stakeholders and identifies areas for further research.[/vc_column_text][/vc_column][/vc_row][vc_row css=”.vc_custom_1552539561639{margin-top: 0px !important;}”][vc_column width=”1/4″ css=”.vc_custom_1552539685099{margin-top: 0px !important;}”][vc_column_text]Keywords[/vc_column_text][/vc_column][vc_column width=”3/4″ css=”.vc_custom_1552539691827{margin-top: 0px !important;}”][vc_column_text]agriculture financing, business case for interlinked inclusive financing, interlinked transactions, value chain financing, partnerships[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator border_width=”2″][/vc_column][/vc_row][vc_row][vc_column][vc_column_text][/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator border_width=”2″][/vc_column][/vc_row][vc_row][vc_column][vc_btn title=”DOWNLOAD PDF” style=”flat” color=”inverse” size=”lg” align=”center” i_icon_fontawesome=”fa fa-arrow-circle-down” add_icon=”true” link=”url:https%3A%2F%2Fdrive.google.com%2Ffile%2Fd%2F1UmM7KdmtTRubzsYorc5jToQNJMI3oYJo%2Fview||target:%20_blank|”][/vc_column][/vc_row]