EASYPol Module 146. Group Exercise. Sources and Uses of Financial Resources

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1 EASYPol Module 146 Group Exercise Sources and Uses of Financial Resources

2 Group Exercise Sources and Uses of Financial Resources Calvin Miller, Senior Officer, Agricultural Management, Marketing and Finance Service, Rural Infrastructure and Agro-Industries Division, FAO, Rome, Italy for the FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS FAO Policy Learning Programme aims at strengthening the capacity of high level policy makers in member countries in the field of policies and strategie s for agricultural and rural development by providing cutting-edge knowledge and facilitating knowledge exchange, and by reviewing practical mechanisms to implement policy changes. About EASYPol EASYPol is a an on-line, interactive multilingual repository of downloadable resource materials for capacity development in policy making for food, agriculture and rural development. The EASYPol home page is available at: easypol. EASYPol has been developed and is maintained by the Agricultural Policy Support Service, Policy Assistance Division, FAO. The designations employed and the presentation of the material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. FAO January 2008: All rights reserved. Reproduction and dissemination of material contained on FAO's Web site for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material for resale or other commercial purposes is prohibited without the written permission of the copyright holders. Applications for such permission should be addressed to: copyright@fao.org

3 FAO Policy Learning Programme Group Exercise: Sources and Uses of Financial Resources Table of contents 1. Instructions Readers Notes EASYPol links... 2 Module metadata... 3

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5 FAO Policy Learning Programme Group Exercise: Sources and Uses of Financial Resources 1 GROUP EXERCISE: SOURCES AND USES OF FINANCIAL RESOURCES Uses Sources Financing of Fertilizer and Seed Secure Agricultural Land Use Rights Financing of a Rural Farmer Cooperative Development of a Rural Credit Union Production and Sale of High Value Crops to a National Supermarket Chain Payment of School Fees Construction of a New Facility for Grading and Sorting Potatoes Trade Credit from Input Supplier Matching Grant Provided by International Donors Borrowing from Commercial Banks and Government Funding Savings Deposits Structured Finance with Commercial Bank Remittances from Family Member Working Overseas Credit from the Local Branch of Commercial Bank Acquisition of a New Tractor Construction of a New School Building Construction of a New Rural Road Lease Finance from a Farm Leasing Company Community Development Financing ( pooled local + donor/gov. resources) Central Government Financing Construction or Rehab of an Irrigation System Construction of a Bio-mass Energy Production Facility Term Finance from an Agricultural or Development Bank The Community Development Carbon Fund Acquire Assets for Quality Certification Under a Long Term Sales Agreement with an Overseas Buyer Enter into Joint Venture Dairy Processing and Marketing Company Emergency Rehabilitation after a Flood Pre-Harvest Finance Joint Venture Investment with Local Fresh Fruit and Vegetable Exporter Foreign Direct Investment Central Government and Donor Funding + Insurance or Remittances Local Traders or Wholesalers

6 2 EASYPol Module 146 Applied material 1. INSTRUCTIONS Divide the participants into 3 groups and give each two sets of cards one set of uses of finance, as shown above and one set of sources. Each group will discuss and match the uses of funding in the left column with the sources in the right column The matching pairs from each group will be posted on a board. One group will present their cards and others will discuss differences. If the groups agree, more than one source card could be placed for some of the uses and these could be taken from the posted cards of the groups not presenting. A comprehensive list will be made and kept on display for the whole session. The other two cannibalized sets will be taken down. Preparation: 15 by 35 cm cards in two colours are cut. One colour is for sources and the other for uses. The source or use information, as shown above, is written on each card. 2. READERS NOTES 2.1 EASYPol links This module belongs to a set of modules which are part of the EASYPol training path Policy Learning Programme, Module 3: Investment and Resource Mobilization, Session 3: Sources and uses of financial resources. Readers can follow other EASYPol documents under Module 3, which is structured as follows: Module 3: Investment and Resource Mobilization Session 1: Investment in agriculture & rural development Session 2: Environment for private investment in agriculture & rural development Session 3: Sources and uses of financial resources Session 4: Strategies for increasing farm financing resources Session 5: Risk mitigation in agricultural investment Session 6: Sector-wide approaches (SWAps) Session 7: Socio-economic & livelihood analysis

7 FAO Policy Learning Programme Group Exercise: Sources and Uses of Financial Resources 3 MODULE METADATA 1. EASYPol module Title in original language English French Spanish FAO Policy Learning Programme Programme de formation aux politiques de la FAO Programa de aprendizaje sobre políticas de la FAO Other language 3. Subtitle in original language English Group Exercise: Sources and Uses of Financial Resources French Exercice en groupes: Sources et emplois des ressources financières Spanish Ejercicio grupal: Fuentes y usos de recursos financieros Other language 4. Summary 5. Date January Author(s) Calvin Miller, Senior Officer, Agricultural Management, Marketing and Finance Service, Rural Infrastructure and Agro-Industries Division, FAO, Rome, Italy 7. Module type Thematic overview Conceptual and technical materials Analytical tools Applied materials Complementary resources 8. Topics covered by the module Agriculture in the macroeconomic context Agricultural and sub-sectoral policies Agro-industry and food chain policies Environment and sustainability Institutional and organizational development Investment planning and policies Poverty and food security Regional integration and international trade Rural Development 9. Subtopics covered by the module 10. Training path FAO Policy Learning Programme 11. Keywords financial resources, group exercise

8 4 EASYPol Module 146 Applied material