ANALYSIS OF CREDIT FACILITIES OF SMALL SCALE FAMERS
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FIRST PART
1.1 Context Of The Study
Credits represent a microfinancial award made accessible by the government through financial institutions to promote economic growth. The agricultural industry is one of the government’s fundamental sectors that it intends to develop rapidly.
Consequently, successive administrations have made attempts to strengthen the agricultural sector by formulating and implementing policies aimed at granting small-scale farmers access to microcredit. It is important to emphasize, however, that small-scale farmers have had limited access to microcredit in recent years due to bottlenecks and bureaucratic procedures that have left the agricultural industry underdeveloped.
Financial institutions have not shown a great deal of interest in small-scale farmers because many of them lack the collateral and financial capacity to meet banking requirements in order to obtain loans. In addition, they find it dangerous and costly to lend financing to small-scale farmers.
In addition, numerous unscrupulous politicians have impeded the process of redirecting monies intended for small-scale farmers to other initiatives. Small-scale farmers have consistently had difficulty gaining access to microcredit to increase agricultural productivity.
Therefore, it is important to increase small-scale farmers’ access to microcredit through an improved financial regulatory framework that eliminates stringent requirements and procedures, and by formulating and directing the implementation of policies that provide small-scale farmers with access to microcredit. White, Timothy K. (1975) ‘Credit and Agricultural Development’. An
Document from the International Bank for Reconstruction and Development (IBRD).
Series on rural development.
Therefore, this study intends to provide an examination of the loan facilities available to small-scale farmers.
1.2 Description of the Problem
Government and banking institutions have not historically provided significant support for the activities of small-scale farmers. This is one of the reasons for the low agricultural production in rural areas, which has impacted the sector’s overall agricultural production.
Lack of proper support in the provision of credit by the government and financial institutions is a major issue facing small-scale agriculture in Nigeria. The agricultural industry is one of the government’s fundamental sectors that it intends to develop rapidly.
Consequently, successive administrations have made attempts to strengthen the agricultural sector by formulating and implementing policies aimed at granting small-scale farmers access to microcredit. It is important to emphasize, however, that small-scale farmers have had limited access to microcredit in recent years due to bottlenecks and bureaucratic procedures that have left the agricultural industry underdeveloped.
Financial institutions have not shown a great deal of interest in small-scale farmers because many of them lack the collateral and financial capacity to meet banking requirements in order to obtain loans. In addition, they find it dangerous and costly to lend financing to small-scale farmers.
In addition, numerous unscrupulous politicians have impeded the process of redirecting monies intended for small-scale farmers to other initiatives. Small-scale farmers have consistently had difficulty gaining access to microcredit to increase agricultural productivity.
The expansion of the sector necessitates the injection of finances to improve the procurement of agricultural equipment, inputs, and investment capital. Therefore, it demands that the government design and implement policies and programs that alleviate the predicament of small-scale farmers by promoting and providing microcredit for agricultural output.
1.3 Aims of the Research
To provide an analysis of small-scale farmers’ access to loans
To evaluate the value of financing to small-scale farmers
1.4 Research Concerns
What is the analysis of small-scale farmer credit facilities?
How much finance is available to small-scale farmers?
1.5 Importance of the Research
Following a period of economic recession, the diversification of the economy through agriculture is being articulated. Consequently, agricultural expansion and development are essential. Therefore, the provision of finance to small-scale farmers is essential for the development of the agricultural industry.
Therefore, the purpose of this study is to promote the need for microcredit among small-scale farmers.
1.6 Study Hypothesis
There is little significance to the provision of loan facilities to small-scale farmers.
Significant is the expansion of loan facilities to small farmers
1.7 Range of the Research
The analysis of lending facilities for small-scale farmers is the topic of this study.
1.8 Restrictions of the Research
The investigation was constrained by logistical and geographical factors, among others.
1.9 Terminology Definitions
Microcredit: A small sum of money loaned to an individual by a financial institution or government, frequently without collateral.
Inputs: Materials (fertilizer, equipment, insecticides, herbicides, and seeds) utilized as inputs for agricultural activities.
Output is defined as the production Yield over a specified time period. Typically for an agricultural season.
This is the income generated from the selling of agricultural products.
ANALYSIS OF CREDIT FACILITIES OF SMALL SCALE FAMERS
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