<h1>AGRICULTURAL FINANCE</h1> CONTENT <ol> <li>Meaning of Agricultural Finance</li> <li>Definition of Agricultural Finance</li> <li>Importance of Agricultural Finance</li> <li>Sources of Agricultural Finance</li> </ol>   <h2>Meaning of Agricultural Finance</h2> It should be noted that all agricultural activities requires fiscal cash for effective farming activities. In most cases the cash has to be raised by the farmers, and where he cannot, he source for them. The loans which can be: Short, medium or long terms are paid by the farmers with interest. Farmers face a lot of problems in order to obtain the loan as they are required to provide collateral security or to pay high interest rate. Due to the nature of agricultural activities, such as (a) The risk involve (b) The long period it takes for maturity and (c) The yield at times not encouraging most financial institutions do not give loans to the farmers   <h2>Definition of Agricultural Finance</h2> This is the process of sourcing, acquiring and application of capital in agricultural business. OR Agricultural financing can also be defined as the acquisition or procurement and use of capital for the purpose of production, processing and marketing of agricultural products. It deals with the supply and demand of fund in agricultural sector economy A farmer must have money to carry out his farming activities.   <h2>Importance of Agricultural Financing</h2> <ol> <li>it enables the farmers to carry out production on a daily basis</li> <li>it helps the farmers to pay wages and other expenses</li> <li>it enables the farmers to adjust to changing economic conditions</li> <li>it increases the efficiency of production</li> <li>it ensures timeliness of operation</li>

<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>

<h1>AGRICULTURAL INSURANCE</h1> CONTENT <ol> <li>Definition of Agricultural Insurance</li> <li>Importance of Agricultural Insurance</li> <li>Types of Agricultural Insurance Policies</li> <li>Various Agricultural Risks</li> <li>Insurance Terms</li> <li>Problems of Agricultural Insurance</li> </ol>   <h2>Definition of Agricultural Insurance</h2> Generally, insurance is a form of risk management used to absorb the shock of unexpected loss. Agricultural producers have series of risks affecting the income and welfare of their households. These are mainly production risks in relation to weather conditions, pests and diseases and market conditions. Agricultural insurance can be defined as the agreement where one party (insurer) promises to pay another party (insured) of a sum of money in the event of suffering a specified agricultural loss or damage.   <h2>Importance of Agricultural Insurance</h2> The following are the importance of agricultural insurance: <ol> <li>It help to give the farmers or investors peace of mind because the insurance policy will meet the financial consequences of certain risks.</li> <li>It inculcate savings habit in farmers as to prepare them for future.</li> <li>Insurance certificate can be used as collateral security to secure loans from commercial banks by farmers.</li> <li>It help to contribute to the invisible earnings of the country i.e. foreign exchange.</li> <li>Life insurance can be used as a means of preparing for old age of a farmer.</li> <li>Insurance makes fund available for investment in agriculture.</li> <li>Losses are controlled by agricultural insurance by reducing the frequency and severity of losses.</li> <li>Social benefits such as employment opportunities,job security and continued contributions to nation building are encouraged by agricultural insurance policy because business is kept alive as long as the financial consequences of certain losses are met by the insurance.</li> </ol>   <h2>Types of Agricultural Insurance Policies</h2> The types of insurance policies include the following: