Government Financing Helps Farmers Gain Access to New Technologies

DES MOINES, Iowa — Panel participants at the 2011 World Food prize examined how access to technology and financing and improved regulatory measures could advance emerging markets.

Access to loans and credit is essential to getting newer crop protection products to farmers. However, access to lower-cost, existing technologies is the first step to improving emerging markets.

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“We need to have existing technology in the hands of farmers in Africa before we even invent new ones,” said Namanga Ngongi, president, Alliance for a Green Revolution in Africa (AGRA). “The US has a great wealth of information and technology that could be put to great use in Africa.”

Governments need to build a financial system that would give farmers the operating capital needed to finance their ventures.

“The number one impediment limiting the market is a solid financial system,” said Samuel Allen, Chairman and CEO, Deere& Co. “If farmers don’t have access to financing in good times and bad, you don’t drive the agriculture market forward.”

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In addition, farmer education involving basic economic principles is also important.

“The construction of capital markets can help farmers,” said Hugh Grant, CEO and president, Monsanto. “Farmers need to know how to trade supplies.”

Farmers in emerging markets are beginning to recognize the value of their crops and are starting to price according to world markets, Grant added.

However, panelists agreed that governing bodies are the key to boosting agriculture in their respective countries.

“Governments need to help their own areas be productive and realize they can help others be productive,” said James Borel, executive vice president, DuPont.

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