<h1>AGRICULTURAL FINANCE - AGRICULTURAL CREDIT</h1> CONTENT <ol> <li>Meaning of Agricultural Credit</li> <li>Classification or Types of Agricultural Credits</li> <li>Differences between Agricultural Credits and Subsidies</li> <li>Problems Faced by Farmers in Procuring Agricultural Credits</li> <li>Problems Faced by Institutions in Granting Loans to Farmers</li> </ol>   <h2>Meaning of Agricultural Credit</h2> Credits are loans obtained by a farmer to start or expand his farming business. It may be in kind or cash. Credits are payable over a period of time with some interest determined by the source of the credits. Before credit is given out to a farmer, the lender needs detailed information about the borrower. Certain vital statistics are usually provided, such as; <ol> <li>Reliability of the citizen</li> <li>The intended purpose</li> <li>The plan for the proposed projects (feasibility Studies)</li> <li>The ability of the farmer to execute the project successfully</li> <li>Collateral Security in form of</li> <li>Landed property (stationed in good site)</li> <li>Stocks and shares</li> <li>Life assurance policy</li> </ol>   <h2>Classification or Types of Agricultural Credits</h2> <h3>Classification of Agricultural Credits based on Length or Period of Credit</h3> There are three types or classes of credits given to the farmers. They are based on length or period namely: <ol> <li>Short term credits</li> <li>Medium term credits</li> <li>Long term credits</li> </ol>   <h4>Short Term Credit</h4> This is a productive credit which the borrower is expected to refund in a year or less. It may be used to purchase livestock feeds, fertilizers, seeds, or to pay for hired labour. They are used to produce crops such as grains and cereals and animals that mature within short period such as broilers in poultry.

<h1>AGRICULTURAL FINANCE - THE CAPITAL MARKET</h1> CONTENT <ol> <li>Meaning of Capital Market</li> <li>Institutions Involved in the Capital Market</li> <li>Sources of Funds for the Capital Market</li> <li>The Stock Exchange Market</li> <li>Companies Involved in the Stock Exchange in Nigeria Connected with Agriculture</li> <li>The Role of the Capital Market in the Development of Agribusiness</li> </ol>   <h2>Meaning of Capital Market</h2> A capital market is where business enterprises, companies and governments raise long term fund to carry out their activities. Capital market refer to institutions that deal with medium and long terms loans for investors to inject into their business. A typical example of a capital market is the stock market. Agricultural investors like other business practitioners can approach this market to source for fund for agribusiness.   <h2>Institutions Involved in the Capital Market</h2> The following institutions are involved in the capital market: <ol> <li>Commercial Banks</li> <li>Mortgage Banks</li> <li>Nigeria Agricultural Cooperative and rural Development Bank (NACRDB)</li> <li>Government Agencies e.g. Central Bank of Nigeria (CBN)</li> <li>Stock Broken Firms</li> </ol>   <h2>Sources of Funds for the Capital Market</h2> The capital market is funded through the following means: <ol>