Innovative Agricultural Financing Models to Enhance Farmers’ Access to Sustainable Credit and Investment

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Qualitative analysis finds value chain financing and blended finance improve credit access for farmers, suggesting better collaboration is essential.

Value chain financing in Kulon Progo reduced non-performing loan rates to 1.2%, improving farmers' financial stability.
Digital lending in Jember enabled over 3,200 young farmers to access credit, enhancing agricultural participation.
Blended finance in Tanah Datar contributed to a 26% increase in household income, supporting economic growth.
Effective coordination among agribusiness actors, financial institutions, and policy frameworks is crucial for scaling inclusive financing.

Widi et al. (2025) studied this question.

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Qualitative analysis finds value chain financing and blended finance improve credit access for farmers, suggesting better collaboration is essential.