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Specialised agriculture banks

The global 4F crisis (food, feed, fuel and financial) has come, and almost every country in this world can feel its affects.

How about Indonesia? The answer is “OF COURSE”. As a developing country, the 4F crisis is a great problem for Indonesia, but has to be solved accurately and efficiently. What about agriculture in Indonesia? The simple answer is that it needs much attention from its government, agricultural private sector and funding sector (bank).

The bank has a big responsibility of funding (credit), and the Indonesian agriculture society needs a large sum of money to keep and also develop the business. Particularly small-scale and traditional poultry farmers need funding to run and keep existence of their properties. These farmers have the disadvantage that poultry farmers are not bankable. With this I mean that they are at a low level of education and there is hardly any intensity of service by the funding sector (bank) to educate them about banking and its procedures.

On the one hand, almost every general bank says that agriculture is full of risks and the character of a poultry business carries with it a “high risk, high profit”. On the other hand, agriculture stakeholders need more funds to face and pass this global crisis.

So, do we need agricultural banks, or banks that specialise in agriculture to solve the current crisis? Have your say!

Arief Fachrudin

3 comments

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    Hiren Pancholi

    It is not only the credit crunch that is affecting farmers. Also bird flu and management after an outbreak is a big problem. As the price of end products goes down drastically, which makes it difficult for the breeders and layer farmers, and they start cutting their input cost. This results in:
    1. Compromising on the nutrition of the birds.
    2. Cost cutting is the only concern found among the farmers as they make huge losses for chicks not getting sold or egg movement coming to standstill.
    Compromising on nutrition will lead to ovary/GIT problems which may not be able to recover once farmer again starts giving full nutrition, say after a break of 4to 8 weeks.
    In these circumstances what should be the strategies for:
    1. Maintaining minimum nutrition so that cost can be reduced and birds do not loose their production capacity.
    2. What should be the maintenance ration requirements?
    3. Do the role of feed supplement increase when compromising on daily ration?
    4. Any other areas to be looked after so that it will help in “bird flu after management”.

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    kibet edward

    yes there is greate need agriculture banks to enable small scale farmers to better their services in agriculture hence lowering food crisis in various parts of the world (from kenya)

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    yunis said

    to support any sector you need to support it financialy,so it's necessary to have a profesional agricultural funding it means you need to stay with the agriculture project as a baby setter watching project's activity and progress until being reached and stand on a strong foundation and then the payment back period come,this idea needs a high profesional consultants and special care to stand up any agricultural projects.

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