Good Practices in Agricultural Finance

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Policymakers in Indonesia are considering how to ensure greater food security, boost incomes of farmers and rural communities, and expand agricultural production to meet rising food demand from an increasingly urban population. The Indonesia Chamber of Commerce and Industry, KADIN, is taking a leadership role in the national discussion on agricultural policy. Agricultural finance is a critical element in this discussion, and KADIN has requested USAID’s SEADI Project to prepare an analysis of the situation related to key commodity value chains, including rice, corn, and beef cattle, as well as a review of global trends in agricultural finance. This report responds to KADIN’s call for fresh analysis and recommendations on how to improve agricultural finance in Indonesia. In light of recent dramatic food price hikes, and before the convening of the PISAgro working group on agricultural finance, the report arrives at an important point in time.