Crop Receipts: A new Financing Instrument for Africa
Crop receipts are a promising innovation in agricultural finance first developed in Brazil about 20 years ago and recently replicated in Eastern Europe. Crop Receipts allow farmers to obtain pre-harvest finance against a promise to produce a certain amount of crops, with their future farm production serving as main collateral. Taking inspiration from past successes, this study examines the scope for adapting crop receipts to the African context and for introducing them on a pilot basis. The study analysis of the evolution of crop receipts and explores opportunities, challenges and entry points for crop receipt in Africa.