Adapting Micro Finance To Agricultural Activities Economics Essay

Before get downing, it is of import to specify what precisely constitutes agricultural microfinance. Agricultural microfinance is a portion of the microfinance motion which purpose is to supply fiscal services for hapless and low income people, families, and communities. Agricultural microfinance is besides a portion of rural microfinance as defined by the World Bank is the “ proviso of fiscal services such as nest eggs, recognition, payments and insurance to rural communities ( aˆ¦ ) and endeavors of all income degrees and both farm and non-farm population, on a sustainable footing ” ( Andrews & A ; MEDA, 2006, pp. 2-3 ) .

Agricultural microfinance on its portion is dedicated to financing all agricultural activities for the hapless. So we can see that agricultural microfinance is portion of the microfinance and rural microfinance motion, yet they can non be equated. Even if they frequently touch similar people and portion many similar jobs and aims, agricultural microfinance is merely a subset of MF and rural MF.

Financial Sector


Rural Finance

Agricultural Finance

Agribusiness and agricultural microfinance in developing states

Agribusiness is still today a major economic sector in many developing states. It is closely linked with rural communities ( Microfinance Gateway, 2011 ) . An betterment in the agricultural sector of many developing states would be synonymous with an betterment of rural supports and that of the state as a whole. However, despite the obvious importance of agribusiness “ the economic development of rural countries lags behind that of urban 1s ” ( Andrews & A ; MEDA, 2006, p. 4 ) . The entree to MFIs is frequently scarce and developing and successful MFIs in rural countries frequently curtail their credits to clients with diversified income beginnings, or towards diversified rural economic systems. This attack limits doubtless the range and range of MFIs.

Then why this failing of agricultural MF if the bulk of the hapless in developing states depend greatly on agribusiness? It is non that cipher has tried ( or even achieved ) to make agricultural communities but the traditional ways of working of MFIs are non suited for agricultural MF. The frequent refund theoretical account common in urban microfinance can non be copied as such for agricultural MF. Furthermore, governmental intercessions and ordinances through subsidized recognition strategies, whose aims have frequently been to pull the favours of the population or to back up a peculiar policy aim ( e.g. the Green Revolution ) , have been factors haltering microfinance as a whole, and agricultural MF in peculiar ( Llanto, 2007 ) . Donors fled from earlier agricultural recognition programs in portion because of this unwelcoming environment. Between 1979 and 1981, agricultural loans accounted for 31 % of the World Bank ‘s credits. By 2000-2001, this figure dropped to 10 % . “ Agricultural recognition undertakings had to give manner to community-wide development undertakings [ alternatively ] that were seen as supplying a more suited platform for poorness decrease ” ( Llanto, 2007, p. 25 ) .

However, agribusiness is still the most of import economic sector for the hapless in many developing states and its development is hence indispensable. There have been excessively few successes and excessively many failures therefore far. Rural countries have non been served in the same manner as urban countries but today there is possibly a feeling that agricultural microfinance can be successful, by larning from the failures of the yesteryear ( Andrews & A ; MEDA, 2006 ) .

Despite this renewed involvement, agricultural MFIs demand to happen replies to the jobs characteristic of the agricultural sector in developing states. Efficaciously making agricultural families would necessitate a alteration of concern theoretical account and different value propositions from the portion of MFIs ( Llanto, 2007 ) .

In the undermentioned subdivision, we will sketch and explicate the jobs that agricultural microfinance faces. In the subsequent subdivision, we will supply possible thoughts for how to reply these challenges and extenuate their effects in visible radiation of the desire to develop successful and sustainable agricultural MFIs, and to do true on the aim of poorness decrease.

Challenges of agricultural microfinance


Agricultural microfinance faces similar challenges bing for traditional urban-based MFIs: frequently unwelcoming and unstable regulative environments, the absence or deficiency of collateral, a deficiency of recognition history, a failing of market information, income variableness, and high dealing costs ( Microfinance Gateway, 2011 ) . Yet, these challenges are more marked when coming to agricultural microfinance.

In add-on, it besides faces jobs of its ain, specific to its peculiar activity like conditions or disease hazards for illustration. This add-on of challenges explains why the development of agricultural MFIs has lagged so far behind that of conventional urban microfinance.

In this subdivision, the end will be to sketch these agricultural-specific jobs for hapless families, and those more ordinary to all MFIs yet more intense in our instance.

Hazards associated with agricultural activities of the hapless

Recognition hazard and a deficiency of equal collateral

Most husbandmans have small or no equal collateral. Land belongings rights are excessively frequently ill-defined and may be hard to turn out or to implement ( Andrews & A ; MEDA, 2006 ; Llanto, 2007 ) . Farmers in some instances do non have the land they are working on ( CGAP, 2004 ) . In add-on, even when husbandmans do hold belongings rights, the seized land ‘s value may be worthless if it can non be sold easy at an appropriate sum.

Hence, on the one manus, husbandmans do non hold plenty useable collateral and at the same clip, they are greatly at hazard. Indeed, they normally rely on a individual harvest as income beginning so when the first job arises, they have nil left and the recognition establishment has to bear the staying debt ( Andrews & A ; MEDA, 2006 ) .

Furthermore, land ownership rights are frequently hard to turn out, and land enrollment processs as collateral may be long and dearly-won, driving up the cost for both the establishment and its clients ( Llanto, 2007 ) .

Sometimes authoritiess may halter the development of agricultural communities by keeping onerous ordinances, which in the terminal spell against the involvements of the husbandmans[ 1 ]. Llanto ( 2007 ) argues that “ hapless land disposal [ affects the hapless in a greater mode ] ” , even when the first purpose was to protect them.

Finally, if and when land belongings rights are useable, adult females may be at a disadvantage because land rights are frequently registered in the hubby ‘s name.

One can reason that traditional urban-based MFIs have flourished with clients with low degrees of collateral. Yet in the instance of agricultural MF, the challenge is bigger as loans are frequently of larger sums and/or of longer-term.

Consequently, MFIs need to turn to this job in an advanced manner that makes possible the reimbursement of loans with frequently no possibility to prehend lands as collateral.

Weather hazards

Weather hazards are built-in to agriculture, whether in developing states or non. They are by nature unpredictable and utmost phenomenon such as drouths and inundations are likely to destruct the husbandman ‘s crop and income in a individual shot. Farmers may lose their lone beginning of gross and go unable to reimburse their loans ( Andrews & A ; MEDA, 2006 ) .

Commodity and monetary value hazards

Certain harvests may be extremely reasonable to international market monetary values. Monetary values may be highly volatile hence act uponing husbandmans ‘ ability to refund loans[ 2 ].

In the same manner, other states governmental actions may change market conditions for trade goods and have a negative impact on foreign manufacturers. When Vietnam entered the market as a manufacturer of java beans, its success drove off high cost manufacturers in Latin America. Small MFIs in Latin America, that had an importance presence in recognition towards java manufacturers, sustained terrible losingss as a consequence ( Llanto, 2007 ) .

Political intervention may besides change market conditions, by manner of monetary value repair or exchange ordinance ( Miller, 2004 ) .

We can see that external factors can besides act upon greatly husbandmans ‘ ability to do good on their duties.

Systemic hazards, covariant hazards

The hazards mentioned supra would n’t be so disputing if they had no systemic nature. However, this is non the instance. Weather and monetary value hazards have the specialness of impacting a peculiar part or peculiar harvests at the same clip. The challenge is hence to diversify one ‘s hazard, which is particularly hard for little local MFIs, who do non hold the clients ‘ base and range to diversify efficaciously ( Llanto, 2007 ) . Hazards are magnified by working on a comparatively local degree.

Additionally if a job arises, it is in general rural communities as a whole that will be affected. The local non-farm merchandisers will besides be negatively impacted if agricultural communities suffer. This is possibly one of the biggest challenges posed to agricultural MFIs.

Absence of hazard direction establishments

There are fiscal merchandises and insurance companies that would enable MFIs to efficaciously diversify these systemic hazards. However they may non be easy accessible for local MFIs ( Llanto, 2007 ) , or little agricultural MFIs may non hold sufficient experience to pull off those hazards. Furthermore, when insurance contracts do be they are frequently expensive because of the high dealing costs that pull offing many little contracts implies, and because of moral jeopardy and inauspicious choice jobs.

Low and slow investing returns

The border of mistake for agricultural MFIs is highly thin ( Miller, 2004 ) . The investings in hapless agricultural communities have slow and comparatively low returns, hence giving fewer borders for mistake to those MFIs involved in agricultural loaning.

Seasonality of grosss

The traditional MFIs have found a successful manner of working by supplying short-run loans with short-run refunds agendas. However, this concern theoretical account is non good suited for the funding of agricultural activities. Agricultural activities produce seasonal incomes and therefore the traditional concern theoretical account entails a mismatch between expenses and grosss ( CGAP, 2004 ) . MFIs need to accommodate the refund demands with the world of a one time a twelvemonth, or twice a twelvemonth punctual income.

Furthermore the seasonality of grosss means a seasonality of liquidness for MFIs. They have periods of hard currency influxs and hard currency escapes, and it challenges their assets ‘ productiveness ( CGAP, 2004 ) . Consequently MFIs need to happen ways to smoothen the hard currency flow rhythms by trusting on other fiscal merchandises and income beginnings.

Challenges of the farness of hapless agricultural families

High dealing costs and low returns

The isolation and farness of many husbandmans is a challenge for agricultural MFIs. Clients are frequently dispersed and loan officers need to go long ways to make clients, and supervise them afterwards. Some countries may even go unaccessible during winter or inundation seasons ( e.g. Afghanistan ) ( Andrews & A ; MEDA, 2006 ) . In add-on, the farness of some topographic points may turn out to be a danger hazard for loan officers, particularly in times of struggle. These features involve high dealing costs, as a effect of dearly-won and drawn-out travels, and because of the comparative low use of labour.

The cost to put up subdivisions for MFIs is besides comparatively of import. Furthermore, the isolation of certain countries means a low market potency for trade and productive exchanges between people and communities. The chances for the local population to take advantage of technological developments and new employment possibilities may besides be weak.

Hence we can see that the remoteness nature of agricultural communities in developing states implies high costs, both for the MFIs and for the clients, sometimes danger, and besides comparatively low degrees of returns on the money invested.

Lack of skilled labour

It is hard for agricultural MFIs to happen the qualified labour they need in order to efficaciously spread out in distant countries. The mean labour accomplishments are weak and skilled labour really scarce. As a consequence, it is hard for MFIs to be successful in countries where it is needed the most without the appropriate staff ( Andrews & A ; MEDA, 2006 ) .

Increased conditions hazard due to hapless substructures

It is of import to observe that the conditions hazard is exacerbated by the deficiency of proper substructure ( e.g. deficiency of irrigation methods, deficiency of drainage substructure ) . Weather hazards are cosmopolitan, but the low degree of development of targeted communities means they are unable to extenuate efficaciously the impacts of utmost conditions phenomenons.

Outflow of the most gifted individuals

Finally, the comparative deliquescence of distant countries in developing states induces its most skilled labour to fly. There ‘s an escape of the most gifted individuals to urban and more developed countries. As a consequence, the most educated and potentially most profitable clients are more hard to happen and it becomes an issue of profitableness and staff capacity for agricultural MFIs ( Miller, 2004 ) .

Low investing and assets

Given their unstable state of affairs and the high hazards they face, husbandmans frequently opt for risk-minimization schemes alternatively of profit-maximization schemes ( Miller, 2004 ; Llanto, 2007 ) . This, combined with their deficiency of assets, bounds even further their ability to borrow and to salvage money by restricting their accretion of capital. As a consequence of this hazard factor, husbandmans make few worthy investings as they are deemed excessively hazardous, and in bend, it curtails the growing of agricultural communities.

Potential replies to agricultural microfinance challenges


We have seen that agricultural microfinance demands to turn to multiple challenges in order to happen the same success that urban, or suburban microfinance has achieved. The bets that agricultural MF needs to decide are high. The hazards built-in to agricultural activities are combined with the hazards of covering with the hapless. The failing of substructures amplify the jobs even more and eventually the successful attack of urban-based MFIs needs to be revisited for different concern rhythm demands ( see Annex II ) .

In this subdivision, we will sketch several thoughts that have been developed or that are still under development that try to reply the peculiar challenges confronting agricultural microfinance.

Pull offing hazards for MFIs in agribusiness

One of the most of import findings in microfinance of this last 20 old ages is that we have to see most of families as a individual complex economic unit, with several economic activities, multiple income beginnings and assorted funding demands. Therefore, particularly for agricultural families, micro-lenders can alter the construct associating the refunds to the loan usage for a specific activity. Alternatively income from assorted activities are assorted together to run into day-to-day demands and refund duties. In add-on, refund is non a map of success or failure of a peculiar productive activity. This alteration has significantly improved loan recovery rates ; it could be a status for the fiscal sustainability of recognition establishments for hapless people in agricultural communities. Thankss to this displacement in the manner of thought, loaners can offer more flexible loan merchandises adapted to agricultural rhythm, without making inducements to default.

To supply better services to farming families the agricultural micro-lenders besides need to blend the cardinal microfinance rules ( borrower choice, repayment support, progressive credits, near followup on refund, etc. ) with the necessary proficient expertness required to measure the undertaking worthiness of possible borrowers.

Specially trained loaners can break adjust agricultural microcredit conditions to investing chances and to the family hard currency flows in order to minimise the hazards. Furthermore, theoretical accounts could be designed that systematise this information to vouch a more consistent analysis and better informed loaner determinations.

Successful agricultural MFIs have taken the clip to reenforce their capacity before traveling into agricultural microfinance. They tested the potency of rural markets for new merchandises and for concern theoretical accounts. They have managed a diversified recognition portfolio functioning plentifulness of little independent economic activities. In add-on, micro-lenders have frequently capped the sum of agribusiness in their entire portfolio ( e.g. 1/3rd ) , or the sum of activities related to a peculiar harvest, in order to minimise the systemic nature of agricultural hazard.

An alternate mean of variegation is to give loans to families that live out of more than a individual harvest, or that have other non-farm income beginnings. Yet many farming families have merely few income beginnings to trust on. The hazard is hence to restrict agricultural MF ‘s range to the richest families.

Agribusiness companies use another attack. In many developing states, most of the agricultural credits come from agriculture companies and non from Bankss or microfinance establishments. Agribusiness-traders give some inputs to the husbandman ( in hard currency or in sort ) and refund comes after the crop. The merchandiser deducts the loan sum from the crop sell income. In order to decrease production and operational hazards they besides provide proficient advices to husbandmans.

“ Contract farming ” credits besides exist in which husbandmans sign a contract with a merchandiser to sell portion or all of their crop to them, frequently at a pre-determined monetary value. It ensures an income beginning and a market for husbandmans, which in bend agree to provide merchandisers with the in agreement measure and quality demands.

However, those patterns encounter some challenges. They are frequently merely seasonal short-run credits for specific crops. Furthermore, involvement rates may non be good specified because agriculture companies do non hold the necessary competencies for that. Finally, purchasers are more and more demanding about the quality of the production. As a consequence, recognition handiness can diminish particularly for the poorest husbandmans.

One solution could be an association between MFIs and agribusiness companies to take advantage of synergisms. Fiscal establishments have the expertness to offer trim fiscal merchandises ( with well-established monetary values, personalized information and efficient followup ) while agribusiness-traders have a distribution capacity and efficient aggregation webs with the husbandmans. In add-on, they have a better cognition of agricultural techniques and conditions.

Deciding the collateral issue

Agricultural warrants[ 3 ]can be used to procure loans for famers thanks to a contract linked to the crop of husbandmans through warehouses. This pattern allows the husbandman to utilize it like a warrant in exchange for a loan. However, it implies expensive direction activities and accordingly, it is seldom accessible for distant agricultural communities. In this context, partnerships between MFIs and manufacturer associations can be helpful in developing this thought. Those associations could besides be a guarantor for its members or play an intermediate function to ease entree in distant countries.

Supplying the rights services: nest eggs mechanisms

Farming families salvage some money, even if the sums are low. Until now, fiscal organisations do non supply nest eggs merchandises to husbandmans because they consider it as expensive. As a consequence, farming families use other schemes in order to fix for hard times in front. They use non-financial agencies, such as roll uping jewellery, staple harvests, farm animal, and edifice stuffs. Supplying nest eggs mechanisms for hapless husbandmans can be an of import portion of agricultural MFIs schemes in covering with agricultural communities, and husbandmans could happen a benefit in new salvaging chances.

Savingss merchandises allow for better income smoothing. They provide a safe sedimentation immune to theft or overspending from the portion of husbandmans. Furthermore, sedimentations are more liquid than nest eggs in sort, being hence more equal in times of hurt for husbandmans. It can besides be seized as collateral in instance of neglecting reimbursements. In some instances, it can even turn to the fiscal commissariats needed in instance of nuptialss or funerals, or it can assist finance the kids ‘s instruction or future investings in the concern.

Surveies show that most of the rural hapless prefer to hold entree to salvage histories alternatively of utilizing credits to finance investings and of fulfilling multiple demands through recognition. However, it can go on that farming families are non confident to give their money to fiscal establishments. Therefore, those organisations have to plan salvaging services adapted to their demands and capacity. For case by giving them the right to take their money back whenever they want, or by allowing them to salvage through little and regular sums and informing them on the involvement payment of their nest eggs.

Addressing the seasonality issue and the liquidness direction challenge

As explained before, agricultural activities produce cyclical hard currency flows and the clip span of investings is longer than for traditional microfinance.

To counterbalance for cyclicality, microfinance establishments should suggest flexible refund mechanisms. Some establishments have adopted loans with an agro-economic constituent in the credits analysis, without pretermiting other income beginnings that may be available to the family.

Microfinance organisations may necessitate an equal direction information system ( MIS ) and a client feedback system to acquire information on the merchandises, demands and sentiments of the clients. This sort of tools will assist each establishment adapt their services to agricultural rhythms, to watch their application and their public presentation and eventually to better the construct of each merchandise in the hereafter. Unfortunately, illustrations in the field show that it is hard to hold dependable and good feedback from the clients ‘ portion. Furthermore, establishments have troubles in holding good public presentation followup of their merchandises ‘ portfolio.

As to liquidity direction issues of MFIs, a solution could be to negociate recognition lines with larger bank establishments during periods of hard currency escapes. Or instead, like explained before, by carefully pull offing a diversified loan portfolio, and restricting one ‘s exposure to agribusiness by holding urban-based activities.

Minimizing the farness job

A deficiency of formal fiscal establishments in distant rural countries is an of import job for agricultural microfinance. To work out this issue one can be after to reenforce bing substructures and institutional web by leasing offices in local establishments ( schools, station offices, agribusiness histrions, etc. ) . It is a win-win relationship. The local histrions increase their income through the nidation of the MFI, and the MFI does non hold to incur all the costs of puting up a new subdivision ( Andrews & A ; MEDA, 2006 ) .

In add-on, an appropriate usage of new engineerings could assist loaners work in distant countries without good transit and communicating substructures, and little population denseness. ATMs, smart cards and debit cards could cut down costs and ease the proviso of fiscal services in countries with hapless communicating services. It could besides supply flexible payment options and better entree to client histories. If the fiscal establishment ‘s loan analysis and client monitoring systems are good developed, the use of PDAs, for illustration, for loan officers can apologize their work and speed up the determination refering loans granted. Mobile phones can besides be utile as cellular webs are extended. However, for a engineering to add value, MFIs must first carry on careful market research and cost-benefit analysis to guarantee that costs are non superior to the value they create ( Andrews & A ; MEDA, 2006 ) .

Local membership-based organisations[ 4 ]can diminish operational and transactional costs for recognition suppliers if they hold the follow-up, the nest eggs and loans direction at a decreased cost. Those organisations are held and managed by their members. Decentralization of those groups enables to reply clients ‘ demands in a better manner, and it puts more force per unit area on bad debitors. Furthermore, it is easier and cheaper for recognition suppliers to work merely with a individual group of clients than with multiple single husbandmans.

Sing against covariant hazards

Micro-insurance is a recent pattern and a batch of work still needs to be done. The experience shows that establishments ‘ fiscal sustainability is the biggest challenge. MFIs may non be able to confront their duties in instance of a widespread event ( e.g. drouth, disease ) covered by insurance.

However, a promising pattern, the area-based index insurance, exists. It covers both production and monetary value hazards. This insurance is at the regional graduated table and protects against specific events.

To fight with correlative hazards, one could besides utilize fudging instruments available on planetary fiscal markets. For case, a simple put option can fudge the monetary value hazard by vouching a minimal monetary value degree based on an international monetary value for a specific trade good over several months. Using this sort of insurance, MFIs may be more confident to offer agricultural credits. Still, entree to these international markets for little MFIs may turn out hard ( Llanto, 2007 ) .

Another manner to see against these hazards could be to join forces with an insurance company. It could be utile as insurance is non the nucleus activity of MFIs and insurance companies have greater experience in this line of work.

Fostering the accretion of capital

Long-run loaning in order to finance large investings is non a widespread pattern in microfinance. However, agricultural MFIs could utilize debt, equity or subventions to finance long-run credits. Very few long-run credits have been successful, and they were the consequence of public establishments or client-led organisations.

In general, hapless people prefer to split of import investings in multiple stages. It is more low-cost and less hazardous. Farmers finance their investings incrementally with a series of little loans.

Another utile merchandise could be a leasing equipment service. On a contractual footing, the leasing company provides stuffs to the husbandman during a twosome of old ages and the husbandman repays the credit-bail by little sums. At the terminal of the period, either the leasing company retakes the stuffs, or the husbandman can purchase it. During the rental, the proprietor is still the company and it can acquire back the stuff from the husbandman if he does non honour the contract. As a consequence, it is less hazardous than a loan and it is easier than to retrieve a loan ‘s warrant.

This offers to agricultural families a low-risk manner of funding long-run investings. Nevertheless, for loaners and borrowers the viability of this sort of service depends greatly on the state ‘s legal, revenue enhancement, and accounting systems. Today we are still at an experimental measure.

Venture capital, a promising attack?

What is Venture Capital?

Venture capital is a fiscal mean, given by a specialised investing company, for immature and turning companies with a high potency but without sufficient equity or entree to recognition. Within developing states, venture capital is merely present to promote the development of immature companies in their first old ages. In rural countries, they exist as not-for-profit establishments with private or public financess or have international givers help. To contend against poorness in rural countries they offer altered fiscal services to different type of organisations working in the production, transmutation and commercialisation of rural merchandises ( e.g. manufacturer associations, co-ops, companies, single manufacturers and NGO ) .

Why utilizing VC in rural countries?

A venture capital ( VC ) fund can promote the development of rural productive sectors and beef up production and commercialisation Fieldss in rural countries. The venture capital may carry through demands that microfinance can non. For case, the rigidness of recognition instruments, little and expensive loans but above all the incapacity for MFIs to supply long-run loans.

VC is an equity-financing mean, as opposed to debt. The top of this investing is limited merely by the concern public presentation. The client can deploy the capital as he wants. Furthermore, the investor is sharing losingss every bit good as additions. Finally, the capital is available for an drawn-out period until the company achieves some definite ends.


Choice standards are comparatively restrictive ( see Annex I ) , hence restricting the VC ‘s range merely to a few organisations.

Venture capital can run into fiscal demands of some economic sciences entities that they can non happen on the traditional fiscal markets. Furthermore, VC financess help in the direction of concerns in order to accomplish success. This in turns Fosters growing and new enterprises. However, this manner of funding is more appropriate for transmutation and commercialisation activities, which are merely little parts of the rural economic system.

Unfortunately, analysts do non hold plenty insight on venture capital province in developing states to come to any decision.


“ Financial services suppliers in rural markets are non able to take which challenges they will confront. More frequently than non the assorted challenges reinforce and compound each other ” ( Andrews & A ; MEDA, 2006, p. 10 ) . Consequently one needs to follow a holistic attack to decide the challenges that exists for agricultural microfinance. Deciding one job will non be sufficient as they are frequently linked together ( see Annex II ) . Furthermore, one needs to accommodate to the peculiar local factors impacting the good operation of MFIs. Cultural challenges may add up to the already hard undertaking at manus, every bit good as the demand to cover with extra political interventions ( e.g. land term of office ordinances ) ( Miller, 2004 ) .

In position of the proposed solutions, it may still be possible to guarantee the proviso of fiscal services to hapless husbandmans in a successful and sustainable manner. The battle for poorness decrease goes through the economic development of agricultural communities, and microfinance as certainly a function to play in this battle.

Annex I: conditions to hold entree to venture capital financess

Conditionss to hold entree to venture capital:

To be a profitable organisation or with positive fiscal positions. The undertakings expected profitableness has to make at least 10 % per twelvemonth.

To hold a important societal impact on rural environment.

The beneficiary must hold a 3-year experience in his sphere.

To hold an established market.

To hold a transparent activities direction.

VCs need an “ issue ” option which is non easy in the agricultural sector.

Annex II: Intertwined challenges of agricultural microfinance