Situation of Equity Financing in Agriculture
It has been seen that in most of the countries the situation of equity financing in agriculture has been far from impressive. In all these countries equity financing from the public sector has not met the levels of requirements. There has been a certain amount of regional imbalance in equity financing in agriculture.
Remedies of Equity Financing in Agriculture
It is however, being expected that these issues would be addressed. Areas of rural development would be given a lot of emphasis. The areas of infrastructural development and rural connectivity will be on top of the priority list. A good strategy would have to be developed in order to make sure that there can be some improvement in the condition of equity financing in agriculture.
Expectations in Equity Financing in Agriculture
There are some expectations in equity financing in agriculture as far as the lenders are concerned. They want the borrowers to provide a certain amount of risk capital and normally prefer lending at fixed rates of interest. The main motive behind such business strategy of the lender is to make sure that the potential for risk is minimized significantly. The terms of equity finance are also supposed to be tailored accordingly.
Future Payment Funds
The future payment funds are important parts of the equity financing in agriculture. As per definition, in case of these funds the borrowers take money for paying off installments at a future date. The money, in case of the future payment funds, are provided at a certain rate of interest.