Two-Stage Pre-Sale Financing Strategy for Agricultural Products Supply Chain Considering Capital Constraints

Abstract

In the agricultural production cycle, farmers face financial constraints both before planting and before harvesting, which can substantially restrict production decisions and operational efficiency. With the rapid development of agricultural e-commerce and supply chain finance, platform loans and pre-sale financing have become important channels through which farmers can obtain the funds needed for agricultural production. This study develops a two-stage financing portfolio decision model for an agricultural product supply chain and examines the farmer’s optimal financing strategy, planting quantity, and pricing decisions under exogenously given platform loan and pre-sale financing conditions. The results show that the loan interest rate and commission rate significantly influence the farmer’s choice of financing strategy. Specifically, holding other conditions constant, a higher loan interest rate increases the farmer’s incentive to adopt pre-sale financing, whereas a higher commission rate reduces the incentive to adopt it. Numerical simulations further identify the decision boundaries of the two-stage financing portfolio strategies under different parameter conditions. This study provides theoretical insights into farmers’ financing decisions and the selection of multi-stage financing strategies in agricultural product supply chains.