Agricultural Financing, Risk and Productive Dynamics: A Case Study

Abstract

Agricultural companies face a series of costs to be able to carry out the production process. To cover these costs, financing is a fundamental instrument. In a highly changing economic context, these companies seek to reduce risks in times of uncertainty by diversifying both their activities and financial tools. The objective of this paper is to analyze the financing strategy developed by an agricultural company, located in the town of Realicó (province of La Pampa), which uses different instruments within the framework of the guarantee provided by a Reciprocal Guarantee Society. To achieve this objective, a unique case study was carried out that prioritizes knowledge, the depth of the case and its particularities. Data production techniques were used to analyze documents and interview members of the selected company, as well as other economic agents linked to it. It can be mentioned that this company has tried to compensate for the lack of liquidity to meet the expenses of the agricultural campaign, implementing a financing strategy that includes different tools guaranteed by a Reciprocal Guarantee Society, which has allowed it to reduce risks and financial costs.