Agricultural finance differs from traditional business finance solutions due to unique challenges. Farmers face longer, less predictable production cycles and seasonal cash flows. Weather risks significantly impact crop yields and livestock health, requiring specialised risk assessment and insurance.Collateral often involves land or future crops, making valuation complex.
Government policies and subsidies heavily influence the sector.Agricultural finance typically involves larger amounts due to capital-intensive operations, necessitating tailored finance solutions that address higher costs and sector-specific risks.