The Status and Function of Agro-financial Markets in Enhancement of Investment and Development of Iranian Agricultural Sector

The capital and investment play determinant roles in economic growth and development as well as achieving sustainable economic growth and development is one of the essential objectives of all countries. Realization of such objective requires some particular mechanisms in social, cultural and economic fields. Powerful financial markets are one of the special economic mechanisms, and having strong financial markets requires strong financial institutions in turn. Agro-financial markets can influence significantly agricultural investments through attracting deposits and supplying the necessary resources for investment, investment risks decrease and funds management. This study indicates that in order to develop agro-financial markets, the government has to remove financial intermediation obstacles to amplify financial structures and to develop financial tools while establishing a proper political framework and removing inefficient interventions, hence, several sustainable financial services will be evolved for new investments. At the end, challenges and specifications of efficient agrofinancial markets will be analyzed in this paper.