AGRICULTURAL FINANCE
CONTENT- Meaning of Agricultural Finance
- Definition of Agricultural Finance
- Importance of Agricultural Finance
- Sources of Agricultural Finance
Meaning of Agricultural Finance
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 farmersDefinition of Agricultural Finance
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.Importance of Agricultural Financing
- it enables the farmers to carry out production on a daily basis
- it helps the farmers to pay wages and other expenses
- it enables the farmers to adjust to changing economic conditions
- it increases the efficiency of production
- it ensures timeliness of operation
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ClassHall Instructor
Halima Ahmadu
Frank Nima
Wilfred Bassey
Isaac Ansah
Favour nwankwo
Maryam
Zainab