Financing of Corn Crops in Mocache Canton, Ecuador.

Abstract

This study aimed to determine sources of financing and borrowing capacity of corn producers in the Mocache Canton, Los Ríos Province, Ecuador. Seventy-six corn producers were selected: 43 small (PP), 27 medium-sized (MP), and 6 big producers (GP), whom were surveyed. Results indicate that 40% of producers have between 11 and 30 years of experience. The extent of land devoted to corn goes from 1 to 46 ha. 76% of producers use certified seeds, with INIAP 551 being the most used (69.7%), followed by Dekalb-5005 and Vencedor R-8330 (19.7% and 18.4% respectively), while 22.2% of producers use recycled seeds. The average corn production in the Mocache Canton is 5.6 t.ha-1. Small producers go to informal lenders (loan sharks, traders). Medium-sized and big producers go to both formal and informal lenders (Banks, traders, and promoters). The conditions established by the financiers are varied but, except for the National Development Bank (Banco Nacional de Fomento, BNF), no other bank offers financial products specific to agriculture. The financial offer goes from 100 to 20000 USD by the BNF, and from 2000 to 20000 by private Banks, while promoter companies only offer credits in the form of inputs. The profitability obtained was 27.10% for producers with fewer than 5 ha, 63.22% for those with 5 - 20 ha, and 74.00 % for those with 25 ha or more. Only big and medium-sized producers have a borrowing capacity