'World Bank to boost ‘hedge’ financing for farmers in developing nations'

dont sell your souls to wall street......the house always wins.........from wapo.......

"The World Bank is encouraging farmers and food producers in poorer countries to use some of the same financial tools that are criticized in the hands of speculators to protect themselves against swings in prices and boost global food production.

The organization and J.P. Morgan are setting aside $200 million each to help finance what World Bank President Robert B. Zoellick described as “plain vanilla hedges,” allowing agriculture-related businesses in developing nations to lock in prices well in advance of a harvest or commodity purchase.

The lack of such financial tools in poorer nations — and even in better-developed economies such as Brazil — means that farmers, agricultural cooperatives, food processors and similar businesses can’t plan well or get bank loans. That limits investment and, ultimately, production, Zoellick said.


The program will initially be focused in Latin America and Southeast Asia, where J.P. Morgan’s presence is strongest, but the bank is in discussions with other lenders to expand the program to Africa and the Middle East. J.P. Morgan and other private banks that get involved in the program would earn standard fees and profits. If a grower or producer defaults, losses would be shared with the World Bank"................LINK