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Viewing report
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Grain Receipts as Collateral for Agribusiness'
Financing. Edition No. 1
VDM Publishing House, April 2009, Pages: 92
Jalisco’s corn producers from the Cienega province
are locked in a cycle of low profitability. The corn
producers have been affected by the lack of access
to adequate financial intermediaries such as banks.
The cycle of low profitability contributes towards a
low quality of life and a lack of competitiveness.
Hence, farmers have not been able to adjust to the
fierce competition from the US producers. A lack of
trustworthy collateral is a major problem in order
to get access to credits. The grain receipts system
(GRS) provides a method of collateralizing crops for
access to credits. With the GRS the risk is not
intended to be eliminated; instead it is a mechanism
where the risk is shared between the corn producers,
elevators and banks which are the subject of
analysis in this study using the agency theory.
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