Leasing, trade credit and commodity financing in OECD countries

Commercial financing alternatives for serving agriculture's investment and working capital requirements have expanded significantly in OECD countries. This paper focuses on non-traditional financing sources for agriculture. C ost competitiveness and demand by producers, input suppliers and integrator s are recognised as factors that are driving the process in OECD countries. Examples of leasing and vendor credit arrangements are provided along with a discussion of commodity financing. The paper also explores the instituti onal framework underlying non-traditional financing arrangements from a str ategic perspective. Finally, several preconditions and implications are ide ntified for the expansion of non-traditional financing arrangements in the economies in transition.