Granaries (pósitos): a source of finance for Spain's small farmers, 1900–1950

Abstract

Under the Ancien Régime in Spain local granaries (in Spanish, pósitos) acted as welfare institutions designed to help small farmers in times of crisis. During the first third of the twentieth century they were subject to an intense reorganisation in Spain and this transformed them into the only microfinance institution to which a significant part of the country's rural population had access. However, as the granaries were beginning to get their finances in order, the outbreak of the Spanish Civil War (1936–1939) and the ensuing change in political regime meant that from 1950 onwards they found themselves relegated to the financial margins. The longevity of the granaries makes them an interesting example of a type of financial institution that was able to adapt to different political regimes by changing the way they operated while maintaining their core objective of supporting small farmers.