THE GLOBAL WINDOW OF TURKISH FOOD AND AGRICULTURE The Global Window of Turkish Food and Agriculture Sector
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Fintech (Financial Technologies) for Agritech (Agricultural Technologies)…
In the realm of Agritech and Fintech, although they may seem divergent, their collaboration is essential for mutual progress and the exploration of new frontiers.
Fintech holds the key to revolutionizing Agritech by tackling crucial agricultural challenges such as credit access, securitization, collateralization, insurance, and efficient payment systems. Through technological innovations, Fintech solutions empower farmers and agribusinesses to enhance their operations and expand financial inclusivity.
For example, Fintech platforms can offer farmers unique credit scoring models based on factors like farm productivity and past crop yields, simplifying their access to credit and loans. Moreover, cutting-edge insurance products customized for agricultural requirements, including those utilizing satellite data for real-time evaluations, aid farmers in managing risks like unpredictable weather patterns.
Digital platforms play a pivotal role in streamlining financial transactions, enhancing market reach, and boosting efficiency in commodity pricing and trading. This fusion of Fintech and Agritech has the potential to revolutionize traditional agricultural methodologies, opening up novel avenues for farmers and the financial sector to flourish sustainably.
Exploring avenues like utilizing harvested crops as loan collateral or asset-backed securities for future crops presents both challenges and promising prospects.
The agricultural market’s gross production value is forecasted to reach 4.82 trillion dollars by 2025, with an anticipated annual growth rate of 3.44 percent. In terms of agricultural trade, global agricultural exports were valued at around 1.9 trillion dollars in 2022, underlining the sector’s significant economic impact…
By Dr. Erçin Güdücü,
Secretary General, Izmir Commodity Exchange
