AGRICULTURAL FINANCING LEGAL GUIDE

Study XCII – Development of an Agricultural Financing Legal Guide

INTRODUCTION

UNIDROIT is currently working on the development of a new legal instrument to support access to finance along the agricultural supply chain.

 

The aim of this project is to develop, in one instrument, a coherent legal framework to promote the development of the agricultural sector. The Agricultural Financing Legal Guide will provide guidance on how States can implement legal reforms to facilitate the provision of different forms of finance for agricultural enterprises.

 

It is anticipated that the future Guide will:

(i) provide a comprehensive overview of the transactions most commonly used to finance agricultural enterprises, including asset-based financing and leasing, receivables, crop receipts and warehouse receipts;

(ii) offer a list of existing best practices and standards, reflecting current practices in the distribution of agricultural commodities;

(iii) identify the relevant standards for each transaction/part of the agricultural supply chain and explain how the different standards can work together along the supply chain; and

(iv) highlight gaps in existing instruments and lay the groundwork for the development of potential future standards where needed.

In 2021, the Government of the United States submitted a proposal for the  inclusion of a Legal Guide on Agricultural Financing in the Institute’s 2023-2025 Work Programme. Based on a recommendation from the UNIDROIT Governing Council, at its 81st session in December 2022 the General Assembly approved the project’s inclusion in the 2023-2025 Work Programme with medium priority (UNIDROIT 2022 – A.G. (81) 9). There was agreement that work should commence only after the finalisation of the ongoing work on private law and agriculture.

 

At its 105th session in May, the UNIDROIT Governing Council reaffirmed the need for the proposed instrument, and recommended that the project be upgraded to high priority on the Institute’s 2026-2028 Work Programme. Following this recommendation, the General Assembly, at its 85th session (Rome, 11 December 2025), upgraded the project to a high-priority project (see UNIDROIT 2025 – A.G. (85) 3, para 50; UNIDROIT 2025 – A.G. (85) 14, Item no. 6).

In order to further delineate the project’s scope, UNIDROIT held an Expert Round Table on Agricultural Finance and Crop Receipts on 14 May 2026 in Rome. The event allowed expert participants to discuss the Secretariat’s preliminary work and facilitate an exchange of views among experts on existing standards, emerging issues and practical perspectives on Agricultural Finance and Crop Receipts. The Workshop was attended by a number of the project’s key stakeholders, including the United Nations Food and Agriculture Organization, the International Fund for Agricultural Development, the World Bank Group, the International Law Institute, the Asian Development Bank, the United Nations Commission for International Trade Law and the European Bank for Reconstruction and Development.

A Summary Report from the Expert Round Table is available here.

Consistent with UNIDROIT’s established working methodology, a formal Working Group has been established to develop the instrument. The Working Group is composed of individuals selected for their expertise in the field of agricultural finance and crop receipts. Experts participate in a personal capacity and represent different legal systems and geographical regions. Relevant international organisations, multilateral development banks, private sector associations and additional academic experts participate in the Working Group as observers.

 

First Working Group Meeting (14-16 December 2026)

The first session of the Working Group will take place at the seat of UNIDROIT in Rome and online from 14 to 16 December 2026. The draft agenda and meeting documents will be posted in due course.