InSight #19: Providing Cost-Effective Credit to Small-Scale Single-Crop Farmers: The Case of Financiera El Comercio
By Bettina Wittlinger and Tiodita Mori Tuesta - Published: 2006
This InSight describes the case of Financiera El Comercio, a regulated microfinance institution in Paraguay. El Comercio has implemented a partnership—the only one of its kind in Paraguay— with silos that enables it to provide small loans to single-crop soybean farmers despite their higher risk profile. This InSight evaluates the conditions that are needed for this type of credit, and describes the lessons learned from this type of credit and other successful models of financing single-crop farmers.
