World Bank unveils hedging tool to aid farmers

WASHINGTON, (Reuters) – The World Bank today  launched a new agricultural hedging tool that will provide an  initial $4 billion to help farmers in poorer countries deal  with food price volatility.

The World Bank said the Agricultural Price Risk Management  tool will improve access to hedging instruments to shield  consumers and agriculture producers from swings in global food  prices.

The new instrument comes ahead of a meeting this week of  the Group of 20 major economies to discuss rising global food  prices and increased food price volatility, which makes it  tougher for their farmers to plan ahead.

“With this new tool, we can help farmers, food producers,  and consumers protect themselves against price swings,  strengthen their credit position, and increase their access to  finance,” World Bank President Robert Zoellick said.

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