The government is planning to substitute a marketing loan program for the present rice purchasing program. The farmers who joined the rice marketing loan program could get 10-20% of partial payment in advance when they sign an marketing contract with ...
The government is planning to substitute a marketing loan program for the present rice purchasing program. The farmers who joined the rice marketing loan program could get 10-20% of partial payment in advance when they sign an marketing contract with an marketing agent (e.g. co-operatives, local rice processing company,..., etc.). When the farmers deliver their rice to the marketing agent, the agent loans money worth of 40-60% of the total value of the rice to the farmers until he/she sells the rice at the most advantageous price. After the rice is sold the agent deducts expenses and pays the rest of money to the farmers. In the research, ① a model for the marketing loan program is built; ② the effects of the marketing loan program is analyzed; ③ the effects of the marketing loan program are compared with the effects of other government rice programs (e.g. the rice purchase contract program).