Agricultural Loans Research Articles

THE IMPACT OF SOME AGRICULTURAL LEGISLATION AND WHEAT FARMERS' COMMITMENT TO IT IN WASIT GOVERNORATE

The research aimed to analyze the results of the application of some agricultural legislation and laws and the degree of commitment of wheat farmers, in addition to knowing the role of agricultural legislation in supporting agricultural policy in Iraq and knowing the degree of its success. A questionnaire was used for a sample of 247 farmers in Wasit Governorate, and they were asked with a set of 26 questions. The results showed that a Likert scale was used. The results showed that with regard to the question of not providing agricultural loans, 80.3% of farmers considered it an important issue. As for the questions of weak support for production inputs prices and weak support for final output prices, their answers were largely similar with the word “agree” with 88.79 and 87.72% of the sample answers. The research concluded double the amount of government support provided to production requirements for the cultivation of the wheat crop, in addition to that it does not achieve the farmer's goal in reducing production costs, The contribution of this support is weak in relation to the total costs of production requirements. The research also concluded that despite the state setting the purchase price of the crop at prices that exceed international prices for it, it was not sufficiently remunerative compared to the high production costs in Iraq. The research recommended the need to tighten control for the purpose of preventing farmers from violating the imposed government legislation in order to regulate production and develop the agricultural sector, as well as work to improve the reality of agricultural crop production, especially the wheat crop, by providing government support for the use of modern technologies to raise the level of production and then achieve greater returns for farmers.

Willingness of Agriculture Students to be Involved in Agripreneur Career in Southeast Nigeria

Africa has over 420 million youth that could be asset, conversely’ they continue to face challenges of unemployment, underemployment and poverty despite the potentials of agricultural sector in providing income-generating opportunities. The limiting factors for their participation in agriculture is not well documented. This study, therefore investigated how willing of agricultural students in agripreneurship in Southeast, Nigeria. A multi-stage sampling procedure was used. Southeastern Nigeria was purposively selection due to high unemployment and poverty. Two Federal Universities were purposively selected. Students were randomly selected proportionate to the population size. In all, 120 respondents were selected. Structured questionnaire was used to capture data. Data were analyzed using descriptive statistics and logit regression α=0.05. The study revealed that Sex (β=0.80), previous year of participation (β=0.17), vision to be an employer (β=1.26) and experience (β=2.90) positively influenced willingness to participate while high unemployment rate (β= -1.66), inadequate agricultural facilities and lack of government support/credit facilities (β= -2.15) and insecurity/herdsmen menace (β= -0.037) had negative effect. The study also found out that major perceived constraints in taking up agripreneurship were lack of start-up capital, inadequate infrastructural facilities, marketing challenges and poor accessibility to agricultural loan. Therefore, effective youth-oriented policies and innovative development strategies such as inclusion of agripreneurship training in their early school day training, revitalization of farm settlement scheme, provision of inputs and credit facilities among others are drivers to tap the energy of young Nigerian labour force for productive and beneficial ventures.

Determinants of access to agricultural credit among smallholder rice and maize farmers in the eastern and western provinces of Rwanda

Agricultural credit is believed to play a catalytic role in enhancing agricultural productivity; however, its access is limited for smallholder farmers in Rwanda. To investigate this phenomenon, this study sought to identify and assess the determinants of access to agricultural credit among rice and maize smallholder farmers in Rwanda. The study was conducted in the eastern and western provinces of Rwanda using a cross-sectional survey design. Sample districts, sectors, and cells were obtained using stratified random sampling techniques. Convenient and purposive samplings were used to sample households and farmers, respectively. Data were collected using structured interviews and questionnaires, and were analyzed using a binary logistic regression model. Model results indicated that both individual and institutional factors determine access to agricultural credit among smallholder maize and rice farmers in eastern and western provinces of Rwanda. The individualfactors included: saving of money in commercial banks (Adjusted Odds Ratio (AOR) = 2.389), owning a size of land that is 0-0.1 ha (AOR = 0.127), and knowledge of the repayment terms of agricultural loans (AOR = 0.203), while the institutional factors included: having privately-owned finance institutions in the area (AOR = 0.287), offer of both long and short-term loans (AOR = 0.290), interest rate between 11-15% (AOR = 0.178), the process for obtaining agricultural credit not being too long (AOR = 2.026). Institutional factors were more important than the individual farmer characteristics in determining access to credit. Policy interventions aimed at bolstering agricultural credit access among the smallholder farmers should address institutional challenges such as information asymmetry and the lack of credit guarantees that hinder agricultural credit access.

Socio-Economic Culture of Backward Communities: An Educational Achievement of Dalit Students

The Dalit community is a backward class, due to socio-economic and educational reasons. To providing equal opportunities in education but the problems also rised, if is not done, it will be difficult to achieving educational goals and opportunity of social change. Increasing the economic access of the Dalit community will lead to participation in development and inclusion of their children in education. The problems are expressed by educational progress of Dalit students due to Poverty, lack of consciousness, large number of families, landlessness, unemployment, lack of educational scholarships, lack of agricultural and business loans, lack of schools near slums, high fees, inferiority complex, traditional social norms, discrimination against children, wasteful spending, relocation and falling mentality. Due to this, governmental and non-governmental organizations have helped to Dalit parents in their economic and social development through Dalit oriented programs. The enrollment rate of basic level is 92% as per the national policy of the government and 8% of children are out of school according to government statistics and 25% out of school according to non-government data, the challenges of educational progress of Dalit children are still acute.

Ad hoc government payments impact on non-real estate farm debt

PurposeThe authors examined the impact of the Market Facilitation Program (MFP) and Coronavirus Food Assistance Program (CFAP) payments to United States agricultural producers on non-real estate agricultural loans.Design/methodology/approachThe authors used quarterly, state-level commercial bank data from 2016–2020 to estimate dynamic panel models.FindingsThe authors found MFP and CFAP payments not associated with the percentage of non-real estate agricultural loans with payments over 90 days late. However, these payments associated with the percentage of non-real estate agricultural loans with payments between 30 and 89 days late. The available data utilized cannot consider when producers received the actual payment and what they specifically did with those funds.Originality/valueThe contribution of this study is for US policymakers and agricultural lenders. The findings could be helpful in designing and implementing future ad hoc payment programs and provide an understanding of potential shortcomings of the current safety net for agricultural producers in the Farm Bill. Additionally, findings can assist agricultural lenders in predicting the impact of ad hoc payments on their distressed loan portfolios.

English

Agricultural finance is needed for sustainable agricultural production and improved farm income. The study analysed the accessibility of institutional credit among poultry farmers in Rivers State. Specifically, it described the socio-economic features of the farmers, identified the institutionally-based agricultural credit sources and credit amount requested by farmers. Data was analysed using descriptive statistics and logit regression. Results showed that majority of the farmers (71.85%) were male, averagely 40 years old. The average household size of the farmers was 4 persons. Majority (66.67%) indicated they had tertiary education. Most (60%) of the farmers had access to credit through institutional sources of which 40.74% of them got the credit through cooperatives. On the other hand, less number of farmers (40%) accessed credit from non-institutional sources. The variables: Sex, credit awareness, education, and credit demand were significant influencers of credit accessibility. Major constraints limiting farmers’ access to credit included lack of understanding of existing agricultural credit programs, loan transaction costs, granted credit amounts that were too little, and excessive interest rates. The study suggests that relevant agencies should engage in creating greater awareness and enlightenment on available agricultural credits and how to obtain the agricultural loans and more so, the farmers should be encouraged to participate in cooperative groups. Key words: Agriculture, credit access, financial institutions, poultry, smallholder farmers.

Determinants of Loan Acquisition and Utilization among Smallholder Rice Producers in Lagos State, Nigeria

Agriculture is a major contributor to economic development in most developing nations, with smallholder farmers playing a critical role, but their productivity and growth are impeded by a lack of access to agricultural loans. The affordability of loans is critical for sustainable agricultural development. Therefore, this paper investigates farmers’ loan acquisition and utilization, as well as their choice of loan sources using a two-part model and multinomial logit model. A total of 281 smallholder rice farmers were surveyed in Lagos State, Nigeria. The empirical findings show that marital status, farm size, and interest rate were all positive and significant influences on farmers’ loan sources of choice. In addition, annual farm revenue and the interest rate have a significant positive impact on loan access, whereas education, farming experience, farm size, off-farm income, and farm income have a major impact on loan use. The study also reveals that the preferred loan source differs according to the characteristics of farm households. The study concluded that access to loans increases farmers’ income in the region. It was recommended that the socio-economic characteristics of rice farmers should be considered when formulating and implementing policies to improve smallholder farmers’ access to agricultural loans.

Financial Empowerment of Farmers Through Agricultural Credit by Commercial Banks: A Descriptive Analysis

According to the economic survey of India (2020-2021) stated that the total food production in the nation recorded at 296.65 million tonnes in the financial year and it has been increased by 11.44 million tonnes in the financial year 2019. The Indian government has set the goal to procure 42.74 million tonnes from the central pond in the financial year 2021. Similarly, the output of horticulture produce was estimated at 326.6 million tonnes in the financial year 2020. The sugar production has increased to 26.46 metric tonnes from 2019 to 2020. India is one of the prominent exporters of farm products across the world. The institutional loan is considered to play a very crucial role in the farm sector growth and development in India. The admission and delivery of rural credit are slanted in favour of healthier gifted regions and within the similar region posh towards better-off families. Agricultural credit is important to the farm credit system in India due to the capital accessibility of the farmers. It helps them to procure various raw materials such as seeds, fertilizers, land and other capital equipment. The agricultural credit is to be made accessible and available to agricultural and allied activities to promote agricultural output. The developing country like India, need greater support from the farmers for inclusive growth and development. This present study is followed the descriptive and analytical methods of research. Data for the present analysis is purely based on secondary data sources. The secondary information has been collected from various published reports such as NABARD and Reserve Bank of India for various years. During the 2004-2005 period, the target was aimed by the commercial banks was Rs.57000 crores. But the actual disbursement took place with Rs.81481 crores. It is evident from data sources that the disbursement amount was consistently increased from 2004-05 to 2007-08. The agricultural loan has been disbursed with Rs. 125477 crores, it was a huge increase as compared to the previous year disbursement of Rs. 81481 crores. It was reached 156850 crores rupees during 2007-2008

CONSTRAINTS TO FARMERS’ ACCESS, UTILIZATION AND REPAYMENT OF BANK OF AGRICULTURE’S LOAN IN NORTH CENTRAL, NIGERIA

The study analyzed the factors constraining the ease of access, utilization and repayment of agricultural credit of the Bank of Agriculture to farmers in North Central, Nigeria. Multi-stage sampling procedure was used to sample a total of 202 beneficiary farmers of BOA credit in the region. Primary data were elicited from the farmers with the aid of structured questionnaire that was complemented with interview schedule. Data analysis was done with descriptive statistics and principal component model. The result revealed that six (6) factors constitute the major constraints adversely affecting farmers’ access and utilization of BOA loans and they include bank structure and interest rates (10.8%), risks (9.5%), perception and poor loan administration (9.5%), integrity (7.8%), profitability (7.8%) and collateral constraint (7.7%) which explained a total of 53.2% of the variance in the 17 constraining variable components. The study concluded that these factors pose great threat to financing agricultural sector by formal institutions and consequently affecting agricultural productivity of the farmers in the region. It therefore calls for urgent intervention and remedy by all the relevant stakeholders. The study recommended that the procedures for the agricultural loan applications, approval and disbursement should be emendated to aid farmers’ ease of access of the loan and its optimal utilization which conveniently enhances the repayment. It was further recommended that the Bank embrace technology to make up for its poor spread and reach across the country.

Access to and Repayment of Agricultural Credit in the Face of COVID 19

Purpose: Gender differences in access to and repayment of loans seem to be the reason behind the persistent subsistence and small-scale nature of most agribusinesses in Cameroon. This study examines access to and repayment of agricultural credit in the face of COVID 19 in the West Region of Cameroon building on evidence from selected microfinance institutions in the West Region of Cameroon. Specifically, the study mirrors gender differences in microfinance loan disbursements and repayments, determinants of loan repayment, and constraints to loan access and loan repayment during the period of COVID 19. Method: The purposive sampling technique was employed to select 100 farmers who had access to agricultural credit in three villages in the West Region of Cameroon. A pre-tested questionnaire was used for primary data collection and secondary data was collected from microfinance institutions and the internet. Collected data were analyzed employing tables, frequencies, t-test, and regression analysis. Results: Findings indicated that there was a positive insignificant difference in the amount of credit received and repaid by male farmers than that of the female farmers. The male and female have equal access to credit and the same repayment capacities (R2 = 0.55 or 55%). Loan repayment was statistically and significantly determined by loan amount, interest rate, and time lag for repayment at the 5% significance level. Serious constraints to loan access were lack of sensitization, lack of collateral security, and illiteracy while major constraints to loan repayment were family commitment, price fluctuation, crop failure, high cost of production, and interest payment. Implications: Increasing the ceiling for loan amount approved for farmers and curbing excessive bureaucratic procedures would ensure minimal diversion of the loans, higher income for the farmers, and hence better repayment rates. Originality: The distinctiveness of this study is viewed from the context of the COVID 19 pandemic within which data was collected, thus capturing how the pandemic situation played a role in access to and repayment of agricultural loans from the perspective of gender.

Fiscal incentives, financial support for agriculture, and urban-rural inequality

Urban-rural inequality is a significant social problem for developing countries in the process of economic development. Using regional-level panel data from 2004 to 2018, this paper estimates the effect of financial support for agriculture on the urban-rural income gap in China via a staggered difference-in-difference method. In 2009, the finance department issued a Notice on Launching the Pilot Work of Incremental Reward for Agricultural Loans by County Financial Institutions (IRAL) and established an incentive mechanism to leverage financial funds to guide and motivate county financial institutions to increase their investment in agriculture-related credit and support agricultural development. The results show that, through fiscal incentives, financial institutions have more incentives to increase agricultural loans and urban-rural income inequality significantly declined throughout the study data period, particularly in underdeveloped areas. We propose that this policy reduces urban-rural income inequality via three mechanisms: financial availability, shift of labor, and human capital. Furthermore, we also examined the effect of IRAL on the urban-rural consumption inequality, although no significant relationship was found.

COVID-19 and the Non-Repayment of Agricultural Loans in West Cameroon: A major Challenge for the Small Farmer in an Individual Loan Situation

This study raises the problem of the non-repayment of agricultural credits by producers who are members of the Community Growth Mutual (MC2), in this period of COVID-19. It questions the economic mores in force in most member countries of the Organization for the Harmonization of Business Law in Africa (OHADA), where credit has become difficult for small rural farmers; And refers to the theory of the vicious circle of poverty, which advocates an indispensable recourse to foreign capital in the event of financial breakdown, as a means of increasing capital. Since the capital of rural producers remains insufficient and their possibility of reinvestment decreases, then becomes zero because of agricultural credit. To understand the factors of the non-repayment of these credits, data were collected from 100 agro-sylvo-pastoral producers of the Bayangam group (West-Cameroon) of both sexes, aged at least 18 years, having obtained an unpaid credit from the MC2 since 2019, and a manager of this microfinance institution. After analysis, it appears that beyond overproduction and anti-COVID-19 measures that lead to the missale or fall in prices on the market, the conditions of access to credit, the non-possession of acceptable guarantees, the misuse of the object of credit and the practice of financial cavalry by the borrower, as well as the rigidity of the procedures for prosecuting debtors significantly explain this non-repayment. It is associated with determinants such as age, level of education, marital status, type of agricultural activity of the debtor. Hence the need for flexibility of microfinance institutions vis-à-vis rural agro-sylvo-pastoral producers, who are severely affected by the economic shock of the COVID-19.

Determinants of Maize Production Income in Western Uganda

Many smallholder farmers produce maize for both consumption and income purposes. Despite the role played by maize, its income production is low, especially in developing countries. In order to formulate policies targeting maize productivity, it was necessary to have knowledge of the determinants of maize production income. As such, this study aimed at determining the level of income and its determinants from maize farmers. Consequently, data was collected from 220 maize farmers using structured questionnaires. The ordinary least squares model was used to determine the determinants. The results showed that the farmers earned a mean of 372,207 Ugandan shillings (105.18 USD) from maize production. Accordingly, farm size, access to credit and household size had a significant positive influence on income from maize production, while gender (female) of the household heads had a significant negative relationship with income from maize production. It is based on these results that this study recommended that the government should offer training programs targeting female-headed households. These trainings should incorporate farm production as well as marketing. Additionally, farmers should be encouraged to access various sources of agricultural credit including financial institutions that offer agricultural loans at low-interest rates.

“A STUDY ON THE PERCEPTION TOWARDS THE AGRICULTURAL FINANCE PROVIDED BY THE BANKS IN RURAL AREAS”

Indian Economy is heavily depending upon Agriculture since independence, as it contains high weight age in total contribution of national income,so we can say in India agriculture is not business rather way of living life.Agriculture not only contributes to GDP but also in export and import, food processing business and other agricultural business. As India is labour intensive country and also most of peoples live in rural area, agriculture and related business provides majority of employment opportunity in their local region only. India has not preserved and developed its natural resources when it comes to farming. Farmers also suffer due to lack of irrigation facilities.The methods of cultivation in most areas of India are still primitive. There has been a scarcity of fresh investments in agriculture sectors. Indian agricultural industry has its own tailbacks at each stage.The present paper focus on how farmers perceives agricultural loan, do they believe it is really contributing in to economic well being? This paper also attempts and possible suggestion to the stake holders to act in decisive mode while addressing famers issue related to agriculture finance.

Innovative Mechanism of Rural Finance: Risk Assessment Methods and Impact Factors of Agricultural Loans Based on Personal Emotion and Artificial Intelligence.

Agricultural finance is in an embarrassing position in the current financial environment, especially during the process of COVID-19. Based on a small-scale peasant economy, it can no longer meet the rapidly rising demand of farmers for agricultural finance. Moreover, there has been a serious disconnection between the financial system of secondary and tertiary industries, and the quality of development needs to be improved urgently. The agricultural loan risk assessment has always been the main problem that we pay great attention to in the innovation of agricultural finance. Agricultural loans are an indispensable element in supporting agricultural development and promoting rural revitalization strategy. However, financial institutions have certain credit risks in reviewing and issuing agricultural loans. This article studies the speech emotion recognition of farmers in loan review to assess loan risk. As for emotional confusion caused by speech segmentation, a special method of data connection between Convolutional Neural Networks (CNNs) and Bidirectional Long Short-Term Memory (Bi-LSTM) Networks is designed, and a variable-length speech emotion recognition model including CNN and Bi-LSTM is designed. Experimental results show that the proposed algorithm can effectively improve the risk assessment of farmers in loan review.

The nexus between agricultural loan access and farm income of small-scale cassava processors in Oyo state, Nigeria: An endogenous switching regression approach

An agricultural loan is an essential tool for transforming commercial agriculture into a profitable venture. In view of this, this study investigated determinants of access to agricultural loans and the profitability of small-scale cassava processing. It also tested whether access to agricultural loans affected the net farm income of cassava processors in Oyo State using budgetary analysis, endogenous switching regression model (ESRM) and augmented inverse probability weighted regression adjustment (AIPWRA) as a robustness check. A multistage random sampling procedure was employed to gather information from 120 cassava processors. The results revealed that female processors dominated cassava processing, and processors had a mean age of 41.1?7.5 years. Only 23% of the respondents had agricultural loan access, which was primarily sourced informally. Budgetary analysis showed that processors earned an average net farm income of N10,449.87 (US$29.03) in a production cycle. Endogenous switching regression analysis revealed that married and educated cassava processors that were socially inclusive and that had a large processing unit and earned meagre off-farm income were more likely to access agricultural loans. Furthermore, education (?=0.019, p<0.1), number of family members working (?=0.241, p<0.01), processors? experience (?=0.028, p<0.05) and enterprise size (?=0.001, p<0.01) influenced the net farm income of processors that had access to agricultural loans. The treatment effect from the AIPWRA result revealed that ATT and POM for cassava processing were 4.5% and 37%, respectively. Business risks, small enterprise size and high interest rate were the major constraints to agricultural loan access. From the foregoing, a need for a technical support system among cassava processors is inevitable. More so, cassava processors should be encouraged to join trade associations, and young processors should be given priority in credit initiatives for cassava processing.

The Supply and Demand of Agricultural Loans

The Supply and Demand of Agricultural Loans

Assessment of the Impact of Direct Taxes on Public Investment in Agriculture in Nigeria

This study investigates the impact of direct taxes on agricultural funding. For this analysis, the petroleum profit tax, personal income tax, and corporate income tax were employed as direct taxes. These are the three largest direct taxes chosen for this analysis. Agricultural finance has long been a cause of concern, forcing the entire country to suffer from acute hunger as a result of unnecessary apathy. Furthermore, Nigeria now has a high degree of hunger index at 28.3, placing the country 103rd out of 116 countries in the 2021 Global Hunger Index record. This research considers all of these problems and aims to assess the extent to which direct taxes may alleviate the load by providing more direct tax revenues to agricultural enterprises. The evaluation is carried out by collecting secondary data from the Organization for Economic Cooperation and Development (OECD) on chosen direct taxes and agricultural spending from the Central Bank of Nigeria's Statistical Bulletin. The study period runs from 2010 to 2020. The study used a multiple regression technique to present real evidence that all of the direct tax types analyzed had a minor impact on agricultural finance, with the exception of personal income tax, which has a positive and considerable impact on agricultural growth. This leads to the request that Nigerian tax rules be altered to allow for significant use of tax revenue for agricultural loans. The insignificance of petroleum profit tax and corporate income tax to agricultural funding necessitates more effective tax processes and a crackdown on malfeasance among tax authorities.

Appraisal of the Sources and Uses of Agricultural Credits for Increased Food Productivity by Farmers in Delta State, Nigeria

The study appraised the sources and uses of agricultural credits for increased food productivity by farmers in Delta State, the specific objectives were to: describe the socio economic characteristics of farmers, examine the level of accessibility of agricultural credits to farmers and verify the uses of available agricultural credits by farmers, in Delta State, Nigeria. Descriptive survey design was used to appraise the farmers. A sample size of two hundred and eighty-eight (288) respondents were randomly selected from three local government areas in Delta State and used for the study. Descriptive statistics such as percentage, arithmetic mean and weighted mean scores were used to analyze the collated data. Also, inferential statistical tools such as: Linear regression and Analysis of Variance (ANOVA) were employed for test of significance at 0.05% level of probability. The findings showed as regards the socio economic characteristics of the farmers that the mean age of the respondents was 46 years old and were mostly married women in Burutu and Ugelli LGAs, except in Aniocha LGA where the married men constituted the majority. It showed that household size (3.781*), years of experience (2.778*), age (2.233*), marital status (1.362*), contact with extension agents (1.129*), level of education (1.109*) and farm size (0.914*) had positive relationships with the farmers’ accessibility to agricultural credits at 5% significant level. The findings indicated that Personal savings, Loan from Cooperative societies, Bank of Agriculture (BOA), Micro Finance Bank and the Commercial Agriculture Credit Scheme among other formal and informal sources of agricultural credits were highly accessible to farmers in the area. It further showed that accessed agricultural credits were highly used to: Purchase farm tools/equipments (spade, wheelbarrow, hoe, cutlasses, etc. (GM = 3.40), Purchase farm inputs (seeds, fertilizers, pesticides, herbicides, feeds (GM 3.22), Construct fish ponds (GM = 2.89), Purchase processing equipments (GM = 3.10), Pay children school fees (GM = 3.03), Building family house (GM = 2.98), House management (GM = 2.96), and buy car or motor cycle (GM = 2.95) among other uses. The study therefore recommends among others that: Adequate Extension personnel be recruited and trained by the State government for supervision and recouping of government agricultural loans, State government should design a method that would capture only the real farmers on the farm to access agricultural credits for expansion of farms and for real farming, Extension agents should be encouraged to school, supervise and help farmers to form and participate actively in farmers cooperative societies for easy access of credits for their mutual benefits, and A drastic measure to be put in place by the government of the day to punish defaulters who bridge the revolving loans from circulation in the State.

ANALYZING THE POSITION OF RICE FARMERS FROM THE RESULTS OF IMPLEMENTING AGRICULTURAL POLICY IN IRAQ USING A LIKERT SCALE

agricultural legislation and the variables affecting compliance with those legislation, as well as knowing the role of agricultural legislation in supporting the steps of agricultural policy in Iraq. The results showed that with regard to the question related to the lack of agricultural loans, 77.6% of farmers considered it an important issue. As for the questions of weak support for production inputs prices and weak support for final output prices, their answers were very similar with the word “agree” with 79.90 and 81.32% of the sample’s answers to questions (14) and (15), respectively. With regard to the answers to the question dealing with the decrease in water quotas, it was shown that the answers of the sample members were homogeneous and agreed with a percentage of 79.19% that it was one of the most important problems they suffer from. The research concluded that the amount of government support provided to production requirements for the cultivation of the crop does not achieve the farmer's goal in reducing production costs and that the contribution of this support is weak relative to the total costs of production requirements. In addition, despite the fact that the state sets the purchase price of the crop at prices that exceed international prices for it, it is considered unrewarding compared to the high production costs in Iraq. The research recommended the need for an honest supervisory body that works to ensure that farmers do not violate the imposed governmental legislation in order to regulate production and develop the agricultural sector, as well as work to improve the reality of agricultural production by providing government support for the use of modern technologies to increase production rates per unit area and achieve greater returns for farmers.Keywords: Likert scale, subsidy policy, agricultural loans* Part of Ph.D Dissertation of 1st author