Crop receipts as alternative financial instruments

The aim of the paper is to provide insights into the lending against crop receipts mechanism. Crop receipts emerged as promising financial instruments creating an additional type of collateral for agricultural producers that pledge their future agricultural production in order to finance ongoing pro...

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Bibliographic Details
Published in:	Ekonomika poljoprivrede (1979) 2022-01, Vol.69 (3), p.849-861
Main Authors:	Kovačević, Vlado, Janković, Irena, Minović, Jelena
Format:	Article
Language:	eng
Subjects:	Agricultural commodities Agricultural economics agricultural finance innovations Agricultural production Agriculture Breach of contract Collateral Commercial banks Comparative analysis crop receipts Crops cédula de produto rural Financial instruments Financing Foreign aid Harvest Interest rates Literacy Loans preharvest financing Questionnaires Receipts Securitization Standardization Statistical analysis
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Summary:	The aim of the paper is to provide insights into the lending against crop receipts mechanism. Crop receipts emerged as promising financial instruments creating an additional type of collateral for agricultural producers that pledge their future agricultural production in order to finance ongoing production activities. At the same time, they offer an alternative investment opportunity to banks through the creation of a new asset class. European Bank for Reconstruction and Development supported Serbia in establishing a crop receipt system with the aim to serve as a pilot project for Europe. This is the first analysis of the crop receipts system in Serbia. The methodology applied consists of interviews with bank representatives, extensive literature research, descriptive statistics and comparative analyses. Results are indicating that the main shortcomings in the crop receipts system include the lack of specialised shareholders' knowledge, the absence of subsidization of interest rates on loans against crop receipts followed by the lack of appropriate Central bank policy, standardization and securitization.
ISSN:	0352-3462 2334-8453