Agricultural Loans Research Articles

Social Impact of Primary Agricultural Co-operative Societies (PACS) in Nadia District of West Bengal

Aims: The researcher has endeavored to analyze impacts of PACS in-terms of selected social parameters using perception of the sample respondents. The study is significant to evaluate the perception of members PACS.
 Place and Duration of Study: The researchers have employed 290 members in 29 PACS out of the 365 operating PACS found in the Nadia district of West Bengal. Primary data for the study have been collected during 2017-2019.
 Methodology: The researchers have employed a multi-stage random sampling technique for selecting 290 members in 29 PACS in the Nadia district of West Bengal. The Likert-scale used with 5 points in the questionnaire in which, the respondents were required to grade the scale of their satisfaction for particular thing. Data have been standardized for in the study with Zero mean and Unit Standard Deviation. Qualitative as well as quantitative techniques of data analysis were used to describe and analyze the research questions. The data collected from household survey were organized, coded and entered into statistical package, TANAGRA and Statistical Package of Social Sciences (SPSS). Descriptive statistics such as, frequency distribution, percentages etc. multivariate analyses for data reduction, Principal Component Analysis, K-means Cluster Analysis, analyses related to Group Characterization have been done to arrive meaningful interpretations for conclusions of the study.
 Results: The score obtained from the PCA are then grouped through cluster analysis. Social perception is to arrange the score according to deviations from Standard Deviation (SD). More than 76 percent of the total members fall in the group implying the perception of the members on social development by PACS is mostly homogeneous in nature. The researcher has find two variables namely, PACS role on empowering women in decision making and PACS Social business with other rural institutions comprise the first factor. Similarly second factor consist of the two (2) variables namely, PACS role in sensitizing women leadership in PACS management and role in skill development of women though training/ handholding etc. The second factor may be viewed as the factor of woman empowerment.
 Conclusion: The study concludes that PACS play important role in social development of the family. Most of the members agreed upon the positive role of the PACS Empowering women in decision making, Generating awareness of ongoing social development schemes of Government, Mobilizing of weaker sections, Educating Co-operative principles and Social business with other rural institutions. Moreover, PACS help to improve education level and improve habit of agricultural loan at the time of cash requirement particularly during peak season of agricultural operations.

Role of Staple Food Production in Ensuring Food Security in Nigeria

The study investigated the role of staple food production in ensuring food security. The study investigated role of staple food production in ensuring food security in Nigeria. The objectives of this study are to: determine the impact of staple food production on gross domestic product of crops in Nigeria, investigate the value of government guaranteed agricultural loan to farmers on agricultural production in Nigeria, and examine the value of food import bill on total value of import of Nigeria. The study employed time series data. Data is generated from the Central Bank of Nigeria and the National Bureau of statistics bulletin. The study employed the ordinary least square (OLS) of simple regression. The study conducted both econometric and statistical tests. The empirical results showed R2 value of 0.24,053 and 0.22 for models 1-3 respectively. The three models are rightly signed. The coefficient (β) of 0.1631 (model 1) showed that 100% increase in staple food production would lead to a 16.31% increase in gross domestic production of crops (GDPC). Since the computed t-value of 3.102765 falls outside the critical region of 0.0042, we reject the null hypothesis and accept the alternate hypothesis at 5% level of significance. The model 3 test showed that the total import bill (TIMB) was significantly sensitive to variation in the food import bill (β=30.7422). The result confirms that 30.7% of the variation in total import bill was accounted for by the food import bill. Based on the results, the study recommended that emphasis should be placed on one hand and ensuring food security (self-sufficiency) in general.

A Systems Framework for International Development: The Data‐Layered Causal Loop Diagram

Meeting the United Nations Sustainable Development Goals (SDGs) will require adapting or redirecting a variety of very complex global and local human systems. It is essential that development scholars and practitioners have tools to understand the dynamics of these systems and the key drivers of their behavior, such as barriers to progress and leverage points for driving sustainable change. System dynamics tools are well suited to address this challenge, but they must first be adapted for the data‐poor and fragmented environment of development work. Our key contribution is to extend the causal loop diagram (CLD) with a data layer that describes the status of and change in each variable based on available data. By testing dynamic hypotheses against the system's actual behavior, it enables analysis of a system's dynamics and behavioral drivers without simulation. The data‐layered CLD was developed through a 4‐year engagement with USAID/Uganda. Its contributions are illustrated through an application to agricultural financing in Uganda. Our analysis identified a lack of demand for agricultural loans as a major barrier to broadening agricultural financing, partially refuting an existing hypothesis that access to credit was the main constraint. Our work extends system dynamics theory to meet the challenges of this practice environment, enabling analysis of the complex dynamics that are crucial to achieving the SDGs.

AGRICULTURAL INNOVATIONS, EXTENSION, FINANCE AND RURAL LOANS IN THE REPUBLIC OF SERBIA: THE CASE OF LOGISTIC REGRESSION

The aim of this article is to examine the impact of the use of agricultural extension, advisory services and agricultural loans on the introduction of agricultural innovations in the Republic of Serbia. Agricultural innovations are incremental changes through which individuals and organizations introduce new or use significantly improved products, services or ways of organizing in order to increase the performance of agriculture. While agricultural extension involves agricultural knowledge, information and skills that are passed on to farmers, their associations and other value chains market actors, agricultural loans are one of the most important financial instruments available to them. In order to investigate the predictive power and influence of these variables, the paper applied the method of binary logistic regression due to the categorical nature of predictors and the dependent variable. Based on the conducted research, the article found that the use of agricultural loans does not have a statistically significant impact on the introduction of agricultural innovations in Serbia, while agricultural extension has. The article concludes that for the further flourishing of agricultural innovations, the development of advisory services, as well as for the development of various fiscal incentives and rural financial instruments, it is necessary to continuously develop the devastated Serbian village and invest more intensively in rural development. This is the only possible way to prevent further waves of rural population emigration to cities, as well as to improve their knowledge, propensity for innovations and livelihoods.

A Case Study of the Impact of Climate Change on Agricultural Loan Credit Risk

Changing weather patterns may impose increased risk to the creditworthiness of financial institutions in the agriculture sector. To reduce the credit risk caused by climate change, financial institutions need to update their agricultural lending portfolios to consider climate change scenarios. In this paper we introduce a framework to compute the optimal agricultural lending portfolio under different increased temperature scenarios. In this way we quantify the impact of increased temperature, taken as a measure of climate change, on credit risk. We provide a detailed case study of how our approach applies to the problem of optimizing a portfolio of agricultural loans made to corn farmers across different corn producing regions of Ontario, Canada, under various climate change scenarios. We conclude that the lending portfolio obtained by taking into account the climate change is less risky than the lending portfolio neglecting climate change.

Agricultural Loan Utilisation among Beneficieries of Bank of Agriculture in Tafawa Balewa Local Government Area, Bauchi State, Nigeria

The study examined agricultural loan utilisation among borrowers of Bank of Agriculture in Tafawa Balewa Local Government Area, Bauchi State. It had the objective analyzing agricultural loan utilisation among borrowers. Data were collected from 48 randomly selected respondents through the instrument of questionnaire and analyzed using descriptive statistics (frequencies, ratio, percentages, and statistical means), T-test, regression and correlation analyses. The results showed that beneficiaries had a 0.6:1 ratio of loan receipt to credit applied for having received an average loan amount of N107, 250, being 60.4% of the loan application. It was found out that crop production beneficiaries utilised the loan on fertiliser, labour, farm assets, storage bags, agrochemicals and seed/seedlings, while animal production beneficiaries used the loan for stocking, feed, labour, drugs and livestock equipment. Regression result on the factors affecting loan utilisation showed that educational level, farming experience, and number of supervisions were statistically significant (P<0.05), while timely loan receipt and interest rate were significant at (P<0.01). Correlation between number of supervision visits and the loan amount put to agricultural use was statistically significant (P<0.05). It was concluded that farmers made the best use of the amount of loan acquired. However, the loan volume granted to farmers was inadequate. It was therefore recommended that while more should be given in terms of loan volume to farmers, it should be followed by intense supervision as it was found to correlate positively with loan utilisation.

A Study of bank customers on agricultural loan service (Regarding Boriyavi village)

A Study of bank customers on agricultural loan service (Regarding Boriyavi village)

Can the digital economy promote FinTech development?

AbstractBased on theoretical analysis and both the digital economy development index and the FinTech development index, we use a time and individual two‐way fixed effects model to study the impact of the digital economy on FinTech, and the mechanism at work. Our results show that the digital economy can promote FinTech development and that this development level will increase by 12.4117 standard deviations each time the development level of the digital economy increases by one standard deviation. The underlying mechanism is that the digital economy augments the level of technological innovation to promote FinTech development; the digital economy enhances the FinTech development level by improving the quality of credit assets. Further research shows that the digital economy's promotion effect on FinTech is heterogeneous, given the proportion of agricultural loans: the higher the proportion of agricultural loans, the lower the digital economy's promotion effect on FinTech.

An Economic Analysis of The Impact of Some Agricultural Economic Variables on Iraq’s Agricultural Gross Domestics Production Using ccr Model (2008-2019)

The research aimed to determine the impact of some agricultural economic variables on agricultural domestic products. This relationship was estimated between agricultural loans and agricultural investment and the rate of agricultural capital accumulation as independent variables, and agricultural GDP as a dependent variable during the period 2008 - 2019 with quarterly data, so that the number of surveyed observations became 48 observations and using the legal canonical Cointegrating Regression (CCR), the results showed that there is a positive and very high impact for each of the variables of agricultural loans and capital accumulation while the agricultural investment variable was not significant despite its positive sign. The research recommended that agricultural lending should in-kind take the largest share of the loan while being the dominant one and that has tightened control over the destination of the agricultural loan and the guarantees of its repayment on time.

Debates on agricultural loan waiver schemes in India: myths and realities

ABSTRACT The agriculture sector in India is marred with several problems, which have resulted in farmers’ distress. To address the distress of the farmers, both Central and State Governments of India implemented agricultural debt waiver schemes (ADWRSs) as major policy interventions in recent years. These schemes differ in terms of coverage of the farmers and lending agencies. However, all of them aim to benefit millions of small and marginal farmers of India. The implication and evaluation of these schemes has invited serious criticisms from both policy makers and researchers. It is true that these schemes have created fiscal pressure on the implementing governments. In addition, some degree of corruption has become an integral part of the schemes. However, given the extent of the indebtedness of the farmers, waivers may also be crucial as a temporary measure to mitigate agricultural distress. This paper explores the debate and examines the criticism of the ADWRSs from various quarters. We have found that the majority of arguments against the debt waiver schemes widely accepted amongst bankers, policy makers and even economists are based on perceptions and are not backed by sound economic logic and analysis.

Profit Forecasting in Crop Production: The Case of Gazipaşa

Agriculture sector in Turkey is among the largest, employing one out of every five working people. In this study agricultural crop income of Turkey’s Gazipaşa district is analyzed. Located on the coast of the Mediterranean, the district’s main economy is based on agriculture with 81 different crops currently cultivated in 43 regions. For each crop type, total planted land size, yield, wholesale price and operating costs are determined using the data from Turkish Statistical Institute and the district’s Directorate of Agriculture. Crop types are ranked based on their economic returns and top 30 that corresponds to 96.45% of the total agricultural income are determined. Profit forecasts are made for those 30 crop types for each of the next 15 years. Future wholesale prices are forecasted using linear trend projection. The annual agricultural loan interest rate of 7.5% is used to estimate the increase in operating costs. Results show that the annual total profit increases slowly in the next 11 years and then decreases. Moreover, profitability increases only for 18 out of the 30 crop types. Internal rate of return is also found to be 15%. Findings suggest that the current crop diversity is not economically sustainable and a better agricultural production plan is required.

Analysis of Smallholder Farmers Repayment of Bank of Agriculture Loan in Ezza South Local Government Area of Ebonyi State, Nigeria (2009-2018)

Smallholder farmer’s repayment of Bank of Agriculture (BOA) loan in Ezza South Local Government Area of Ebonyi State was studied using 120 smallholder farmer beneficiaries selected using multistage sampling technique. Data were collected from primary source only using structured questionnaire and analyzed using both descriptive and inferential statistics. Results showed default of 32.3% as out of N333, 997,620.50 were disbursed to the farmers a total of N226, 080,887.00 were repaid. However, the socioeconomic characteristics of the loan beneficiaries contributed about 75 % (R2 = 0.754) significant influence on repayment of Bank of Agriculture loan. Meanwhile, high interest rate, excessive bureaucracy, high rate of illiteracy, late approval of loan, lack of collateral, short payback period, and low farm output were identified as the major constraints to the repayment of BOA loan. It is recommended that as a measure to promote efficient and timely repayment of BOA loans by the farmers, management of BOA should address the institutional factors such as high interest rate, excessive bureaucracy and late approval of loan, high-value collateral and short payback period that were identified as the major constraints to BOA loan repayment.

APPLICATION OF AGRICULTURAL LOAN IN MUSLIM COMMUNITY: A STUDY BASED ON KEKIRAWA DIVISIONAL SECRETARIAT OF ANURADHAPURA IN SRI LANKA

Agriculture plays most important role in Sri Lankan economy like some other developing nations in South Asia such as India, Bangladesh, Pakistan, Nepal and Bhutan. In this way, the agricultural farming sector is identified as a key tool for the economic development in Sri Lanka and it helps to effectively utilize the invaluable resources of the country such as green lands and appropriate climate as it should be and to significantly boost the wealth of the country as well. Furthermore, as it helps to expand the level of GDP, the Interest rates as well as the inflation rates are mostly estimated at present depending on the level of agricultural cultivation sector in the country. It is noteworthy to point out at this occasion that as Sri Lanka is mainly an agricultural nation the most people are involving in individual and joint venture farming activities. At the same time, it is also very important to mention here that most people who involve in agricultural cultivation reach the banks and financial institution for the purpose of getting loans to meet their agricultural financial needs. In this context, this research aims to identify the loan systems which are implemented in agricultural sector among the Muslim community, especially among Muslim farmers who are living in Kekirawa divisional secretariat in Anuradhapura district. The research would be extremely significance due to there is no sufficient previous studies find concerning with agricultural loan systems among Muslim community in particular research area in Sri Lanka. This research is designed as mixed method with the inclusion of qualitative and quantitative data which collected in term of finding the correct solutions and providing appropriate recommendations. The findings of the research reveals that the farmers who live in Kekirawa divisional secretariat of Anuradhapura do not depend and connect with banks or other financial institutions to get any advances, but they use to fulfil their needs of capital for farming from money lenders, shopkeepers, friends relatives and NGOs. Therefore, the system should be introduced under the Islamic banks and financial institutions to promote the Shariah compliance products and interest free loan systems not only for Muslim farmers but also to all citizens who wish to involve in agricultural cultivations. Moreover, NGOs and shopkeepers who provide agricultural credit services should be adapted in accordance with the Islamic Shariah compliance. KEY WORDS: Agriculture, Loan Systems, Farmers, Kekirawa. Shariah Compliance, Islamic Banks

Analysis of Microinsurance Demands Combined with Microcredit on Rice Farming by Using Utility Function

Agriculture is a business that is prone to risk and uncertainty so farmers can face serious difficulties at any time. Especially for farmers in developing countries who are generally small farmers. To anticipate these risks and uncertainties, farmers can take agricultural insurance or apply for credit. Even though an agricultural insurance program is available, farmers are constrained by the limited amount of collateral and liquidity constraints. This study aims to analyze the demand for microinsurance combined with microcredit in rice farming. The analysis is carried out with utility functions and utility comparisons using ordinal comparison. Meanwhile, to determine optimal demand by maximizing the utility using an ordinal approach through analysis of budget line and indifference curve. The results show that the demand for insurance and the profitability of agricultural credit increases along with the lower demand for collateral when applying for agricultural loans. In addition, microinsurance combined with microcredit is more profitable for farmers when collateral is not requested when applying for agricultural credit. Based on the results of the case study, the optimal demand is obtained when the premium for Rice Farming Business Insurance (AUTP) is and the installments of BNI People’s Business Credit (BNI KUR) is

AGRICULTURAL CREDIT UTILIZATION AMONG BENEFICIARIES OF DEVELOPMENT EXCHANGE CENTRE IN TAFAWA BALEWA LOCAL GOVERNMENT AREA OF BAUCHI STATE, NIGERIA

The study examined agricultural loan utilization among borrowers of Development Exchange Centre (DEC) in Tafawa Balewa Local Government Area of Bauchi State, Nigeria. Data were collected from 47 randomly selected respondents through the instrument of questionnaire and analyzed using descriptive statistics, Access to Credit Index, t-test, and regression analysis. The results showed that beneficiaries had fair access to credit index of 0.46 having received an average loan amount of N31, 500 being 46.1% of the loan applications T-test however, revealed a significant diversion of the granted amount at 0.5%, implying that borrowers diverted some of the funds to non-agricultural use. It was found out that crop production beneficiaries utilized the loan on fertilizer, labour, farm assets, storage bags, agrochemicals and seed or seedlings; and animal production beneficiaries used the loan for stocking, feed, labour, drugs and livestock equipment. Regression results of the factors affecting loan utilization showed that age, household size, non-farm income source, educational level and farming experience were significant (P<0.05). It was concluded that farmers did not make the best use of the loan amount acquired; perhaps due to inadequate loan supervision. It was therefore, recommended that while more should be given in terms of loan volume to farmers, it should be followed by intense supervision as it was found to correlate positively with loan utilization.

Impact of agricultural finance on technology adoption, agricultural productivity and rural household economic wellbeing in Ghana: a case study of rice farmers in Shai-Osudoku District

ABSTRACT This study uses focus group discussion, key informant interview, and quantitative household survey to explore how smallholders access credits and loans influence adoption of modern production technologies and what are perceived limitations to access these financial instruments in the Shia-Osuduku District in the Greater Accra Region of Ghana. The specific objectives of the study are; (1) to assess the challenges rice farmers face in accessing finance, (2) to determine if access to finance impacts the adoption of modern rice production technologies and (3) to determine whether loan investments in improved technologies increase productivity and income levels of farmers. The study noted that issues of mistrust for smallholder farmers by financial institutions act as barriers to facilitating their access to loans and credits. Banks and financial institutions relay their mistrust through actions such as requesting outrageous collateral, guarantors, a high sum of savings capital, and a high-interest rate for agriculture loans, delays, and bureaucratic processes in accessing loans. The study suggested that enabling policy environment and frameworks with a supportive rural infrastructure such as warehouse receipt systems can significantly increase farmers’ access to credit instruments for investment in modern technologies to increase agricultural productivity, which is essential to address issues of food insecurities and rural poverty in Ghana.

Water Insecurity is Associated with Lack of Viral Suppression and Greater Odds of AIDS-Defining Illnesses Among Adults with HIV in Western Kenya

Reliable access to safe and acceptable water in sufficient quantities (i.e., water security) is important for medication adherence and limiting pathogen exposure, yet prior studies have only considered the role of food security as a social determinant of HIV-related health. Therefore, the objective of this analysis was to assess the relationships between household water insecurity and HIV-related outcomes among adults living with HIV in western Kenya (N = 716). We conducted a cross-sectional analysis of baseline data from Shamba Maisha (NCT02815579), a cluster randomized controlled trial of a multisectoral agricultural and asset loan intervention. Baseline data were collected from June 2016 to December 2017. We assessed associations between water insecurity and HIV-related outcomes, adjusting for clinical and behavioral confounders, including food insecurity. Each five-unit higher household water insecurity score (range: 0–51) was associated with 1.21 higher odds of having a viral load ≥ 1000 copies/mL (95% CI 1.07, 1.36) and 1.26 higher odds of AIDS-defining illness (95% CI 1.11, 1.42). Household water insecurity was not associated with CD4 cell count (B: 0.27; 95% CI −3.59, 13.05). HIV treatment and support programs should consider assessing and addressing water insecurity in addition to food insecurity to optimize HIV outcomes.

Examining the financial relationships between producers and commission agents in the greenhouse vegetable farming industry in Turkey

PurposeThis paper is intended to investigate the economic, organizational and social factors affecting the receipt of advance payment by greenhouse vegetable producers from commission agents operating in the wholesale market.Design/methodology/approachThe data were gathered through questionnaire forms developed for this specific purpose through face-to-face interviews with 180 producers growing greenhouse vegetables in the central district and Serik, Antalya in the Western Mediterranean Region of Turkey. A logistic regression model was employed to analyse the factors affecting the likelihood of greenhouse vegetable growers getting advance from commission agents.FindingsA good financial status of enterprises producing greenhouse vegetables and the fact that their production input needs are met by cooperatives reduce their dependence on commission agents, thereby increasing their bargaining power when selling their products. Since producers can readily meet their need for the capital required for the vegetable production process from commission agents, they do not prefer to borrow from lending institutions making agricultural loans with requirements such as collateral. The fact that greenhouse vegetable farmers receive technical and market information and advice from commission agents strengthens their relationship with them.Originality/valueIt is the first study that evaluates in detail the financial aspect of the relationships between producers and commission agents in the greenhouse vegetables wholesale market. It contributes significantly to agricultural policymakers regarding the functioning of the greenhouse vegetable market, and in particular, the regulations on agricultural loans for production processes.

WORM'S-EYE VIEW ON ‘AGRICLINICS AND AGRIBUSINESS CENTRES SCHEME’ (ACABC) OVER A DECADE IN CONTEXT TO MADHYA PRADESH, INDIA

Six decades ago, Mahatma Gandhi observed, "Agriculture is the backbone of the Indian economy." The scenario is still the same now, with agriculture, which is the mainstay of the communities, supporting practically the whole economy. It accounts for around 52 per cent of the Indian population's employment and generates 16 per cent of the country's overall GDP. The rapid growth of agriculture is necessary not just for self-sufficiency but also to earn crucial foreign exchange. Despite the fact that millions of farmers are marginal and small, Indian farmers are unrivalled in terms of production and productivity. They are just as quick to accept improved agricultural technologies as farmers in rich countries. It is believed that by providing timely and enough inputs such as fertilisers, seeds, and pesticides, as well as making reasonable agricultural loans and crop insurance available, Indian farmers will secure the nation's food and nutritional security. As a result, on April 9, 2002, the ‘Agri-Clinics and Agri-Business Centres' plan was created to increase technology transfer and extension services, as well as provide self-employment opportunities to technically skilled people. Herein after, we imagined the state of Madhya Pradesh from a worm's-eye perspective, which is a view of a scheme from below, as if the observer were a worm; it can be used to make an object appear big, strong, and mighty while the viewer feels childish or helpless. So, we here go through the actual facts by covering about the scheme, NTIs, trained candidates &venture established.

Selected Macroeconomic Variables and Agricultural Sector in Nigeria

The study investigated effect of selected macroeconomic variables on agricultural sector output in Nigeria from 1987 - 2019. Annual Agricultural Output (AAO) represented the dependent variable for the study while gross domestic product, interest rate, money supply, and exchange rate represented the explanatory variables. Ex-post factor research design was employed for the study. Augmented Dickey Fuller Unit Roots test and Ordinary Least Square (OLS) Regression techniques were used to analyze data collected. The empirical investigation showed that gross domestic product as well as money supply has a positive and significant effect on agricultural output, while interest rate and exchange rate exerted a negative and insignificant effect on agricultural output. From the study, selected macroeconomic variables have positive effect on agricultural output in Nigeria and this has tremendously contributed to the country's growth and development. The study recommends amongst other; that government should accelerate the rate of economic growth by investing heavily on the agricultural sector so as to boost domestic production and enhance exportation in order to stabilize exchange rate while curbing inflation; give incentives to banks extending agricultural loans by lowering the lending rate on agricultural loans to ease access to funds for agricultural investment.