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Dick Bezemer asks what can replace the old parastatal coordination system to facilitate farmers procuring inputs and selling their crops. Under the old system the key was that the parastatal deducted the cost of inputs from the proceeds of sales and squared the circle. That they also set the terms of trade in terms of the price of inputs and the price paid for commodities and sometimes set these against the interests of the farmers is widely accepted? In commerce it is the banks which square the circle? How do they do this? Collateral against the finance provided to secure the inputs. Most common collateral in agriculture? Land. Is land available to the majority of smallholder farmers to use as collateral? Might this be one possible mechanism whereby the void left by the old parastatals could be, at least partially replaced? Thanks James Biscoe 8/5/04 0815hrs
Please visit dfid-agriculture-consultation.nri.org.