Barter deals are almost always disadvantageous for farmers, and their lost profits keep them from investing in new equipment to improve future harvests. Davis says governments can help in the short term by offering subsidized loans to small farmers or at least loans at reasonable market rates. Warehouse receipts are one of the most effective tools Western farmers have to market their grain. They allow farmers to transform their harvests into legal tender by placing their grain in a bonded warehouse. In return, the farmer gets a certificate showing the amount and quality of their grain.
Western banks recognize the receipts as collateral for loans.
That allows farmers to continue work toward their next crop while waiting for the best market price for their last harvest. The Romanian government is working on plans to introduce farm loans based on grain receipts. But a key problem experienced in other Eastern states is that the mechanism requires mutual trust by all participants. Banks must recognize the receipts. Farmers must trust that their grain will be available when they want to sell it.