Food security by implementing agricultural chain financing
According to the Iran Economist report from Central Bank, he added: To solve the issue of chain financing, as a new policy to improve financing methods, it was put on the agenda of Central Bank and the banking network. In this context, specifically, contract agriculture and its financing, which the review of global experiences shows is an efficient method both in the field of agriculture and in the field of financing, was put on the agenda.
The director of the central bank’s production chain financing department stated: With the cooperation of banks and specialized ministries, especially the Ministry of Agricultural Jihad and the Ministry of Cooperation, Labor and Social Welfare, a contractual agricultural financing policy was prepared and compiled and communicated to the country’s banking network.
Hamid Azarmand announced: In this regard, in order to familiarize the senior managers of the banking system and the activists of this field and the related executive bodies, the unveiling ceremony of the contractual agricultural financing policy will be held on August 11. In this conference, the methods, road map and necessary coordination for the nationwide and widespread implementation of this new method of providing food will be discussed and reviewed.
In the end, the director of the central bank’s production chain financing department expressed his hope: “Hopefully, with the implementation of the contractual agricultural financing method, we will witness the improvement of rural employment, the improvement of the country’s food security, the increase in the efficiency of resource allocation, and the reduction of pressure on the banks’ balance sheets in the field of agricultural financing and employment.” be a villager
According to this report, “contract agriculture” is a method of production through which the producer (either natural or legal persons who directly or through a specific production organization, based on a contract with the project manager, produces the product) through Signing a contract with a project manager is related to the production of agricultural products.
Financing in contract agriculture includes financing producers for cultivation and procurement of production inputs, executive financing with the aim of completing the value chain, purchasing inputs, raw materials, machinery and development measures and financing in order to provide educational, technical, developmental, knowledge-based services. And there will be research to create added value in the plan.
The transparency of financing projects and increasing the efficiency of resource allocation in the agricultural sector, supporting the formation of integrated agricultural chains, supporting the development of rural employment with non-inflationary methods, reducing the cost of producing agricultural products, supporting farmers by using educational and technical assistance and providing inputs in In exchange for setting up the contract, the possibility of using agricultural contracts as collateral for facilities and helping the country’s food security by increasing the stability of supplying inputs is one of the advantages of this method.