Structured Finance (SF) for agriculture and agribusiness is defined  as the advance of funds to enterprises to finance inputs, production and the accompanying support operations, using certain types of security that are not normally accepted by banks or investors and which are more dependent on the structure and performance of the transaction, rather than the characteristics of creditworthiness of the borrower. Its use is especially relevant when conventional sources of loan security are not available or are insufficient.  The financial crisis in 2008 brought increased attention and scrutiny to some types of such Finance techniques and together with the economic crisis that followed made financing more difficult and with increased requirements for security.

In such situations SF is useful to consider for increasing financing to agriculture and agribusiness by reducing its risks and costs.  The Eastern European and Central Asian countries with stronger economic, social and legal frameworks show the highest usage of SF, most of which is applied to non-agricultural activities. Even though some uses of SF are taking hold in the agricultural value chain. To support SF, international agencies should work with governments to improve the legal and operational environment for SF and should interact with and support private sector financiers.