6. Some Concluding Remarks
Agricultural credit markets work imperfectly even in countries with a developed
market economy and government intervention in the market is widespread. CEE
agricultural reform and the simultaneous restructuring of the banking sector creates
additional problems for financing agriculture. For most banks, financing agriculture is a
high risk activity because of low profitability in the sector, high nominal inflation,
problems with collateral because of uncertain property rights and ineffective land
markets, and the lack of well established relationships between them and new producers.