Agricultural and Biological Research

Dynamics of Agriculture Value Chain Finance: A Systematic Literature Review

Sapna Arora*

Purpose: The study assesses the dynamics and effectiveness of value chain financing in the agricultural sector.

Methodology: The study investigates the potential and pitfalls of using value chain finance in agricultural systems. Following PRISMA principles, a thorough literature analysis found 152 relevant papers after a quality review published from 2007 to 2023, which revealed information about the validity and rigor of studies and methods.

Results: This study emphasizes the critical role of agricultural value chain financing in increasing credit availability, reducing risk and strengthening farmer market links. Value chain financing favors the agricultural industry, increasing production, profitability and farmers’ livelihoods. It accelerates growth and helps stakeholder access credit, working capital and investment opportunities. Challenges include limited financial availability, illiteracy, debt, contractual flexibility and governance. Capacity building programs and supportive policies are critical for long-term agricultural development and inclusive growth.

Originality: This study stands out by finding valuable solutions for farmers, policymakers and financial entities aiming to foster inclusive and enduring agricultural progress. It delves into influential elements and presents diverse agricultural remedies for farmers and policymakers.