Increasing food production is crucial for attaining the Sustainable Development Goal (SDG#2) by 2030 through supplying agricultural credit and improved inputs. Thus, the present study examined the roles of agricultural credit, applications of fertilizer, usage of pesticides, farming area, and agricultural employment in enhancing wheat production in the developing economy (Pakistan) from 1990 to 2020. This study applied the autoregressive distributed lag (ARDL) regression method for the empirical analysis. The empirical findings from the ARDL regression technique revealed that agricultural credit can significantly enhance wheat production, while improved inputs, including fertilizer and pesticide usage, also positively contribute to wheat production. Notably, agriculture credit plays a vital role in assisting farmers to purchase advanced farm inputs and indirectly increases the wheat yield. Consequently, this study suggests that the banking sector should supply agricultural credit to farmers under flexible lending conditions; therefore, farmers can easily access credit and adopt modern technologies to enhance food production and ensure food security.
Read full abstract