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.
