Some bulky commodities, such as fuelwood, a low-value product, are expensive to transport and therefore less lucrative. Poor transportation decreases quantities available for the market and acts as a disincentive to increased production. Most farmers do not own vehicles so overhead costs of transportation of certain commodities may be even higher than expected returns. Poor economic conditions in these countries hamper the possibilities to upgrade the infrastructure in the immediate future. For credit facilities, farmers tend to rely on family members, traders and middlemen.
Few farmers borrow from formal financial institutions because they lack collateral.
Also, methods used for credit checking make most farmers ineligible. However, even where farmers would have been eligible to borrow, long delays between application and receipt of loan have generally deterred them. Repayment methods seldom suit farmers who prefer to repay with produce at time of harvest rather than cash. Generally, governments in developing countries have intervened heavily in rural financial markets, with the aim of supplying affordable credit to small farmers and rural business people to spur investment. Weak legal systems and ineffective enforcement arrangements contribute to commercial banks' reluctance to lend to rural people.