Agricultural finance in Europe is faced with a number of challenges. There is a market failure in the provision of credit for agriculture and producers are deprived of the means to invest and grow. There is a high level of under-insurance meaning that many activities which could or should be insured do not obtain the cover they need.
The application of EO data and related services could change this for example by reducing the cost of evaluating credit worthiness, of monitoring investments or conducting on-the-spot checks and by simplifying to financial business processes. This will be of benefit not only to farmers but also to the finance industry, by enabling it to grow its business in provision of credit and insurance services to a larger number of producers.
The EO4AGRI project will produce a Whitepaper on the use of EO in the provision of agri-finance services. This will include a Policy Roadmap, a Cooperation Framework and a Strategic Research Agenda. The work will be carried out in close collaboration with the finance industry in order to ensure that their needs are addressed in the final recommendations.