Sowing the Seeds of Rural Finance. Exploring the Historical Significance of Monti Frumentari in Italy during the Modern Age

This paper delves into the historical significance of Monti Frumentari, non-monetary credit institutions that played a vital role in rural communities lacking access to money and formal credit channels. Emerging at the end of the 15th century, these institutions were a response to usurious practices that hindered agricultural progress, aiming to strengthen the agricultural cycle by providing grain for sustenance or as advances for farmers’ sowing. Focusing on the establishment of these institutions by the Franciscans, this paper unveils their dual role as charitable works and credit entities operating from the late 15th century to the first half of the 20th century. Their evolution is traced through crucial historical events, such as the Neapolitan Republic of 1799 and the Unification of Italy, as well as their transformation in the 20th century. Emphasis will be placed on the Monti Frumentari in Sicily and their identification as potential precursors to contemporary rural microcredit institutions.