What Are The Importance Of Agricultural Credit?

773 Words2 Pages
bulb-icon

Recommended: Relationship between development and agriculture

Agricultural sector is the major contributor in the GDP of Pakistan. It contributes around 20.9% to the country’s GDP and provides employment to around 67% of the people to the rural population. Our agriculture sector supplies raw material to the industrial sector especially the textiles industries, the largest industrial sub-sector of the economy. In this perspective, any shift in the agricultural income can affect the economy as well as the rural population of the country.
Credit is the backbone of any business. Credit is the major factor in the agricultural sector as well. It is an important tool to improve high productivity and increase th income of the farmers in multiple ways. The access and availability of credit in time is crucial …show more content…

Apart from this, farmers avoid to avail credit from institutions because of collateral and complex procedures that the poor farmers have to avail. Therefore there is a dire need to start a credit program to benefit the maximum number of poor communities without any complicated collateral system. Agricultural credit is an integral part of the process of modernization of agriculture and commercialization of the rural economy.
The structure of the society is that the resourceful farmers received more than their requirements while non- influential farmers did not received anything according to their requirements.
Agricultural credit is the only way to eliminate the two major problems of Pakistan’s rural economy. Firstly, the low income of farmers due to the low acre per yield, secondly perpetual losses encountered due to no recovery of credit. Agriculture gave the farmers an independent and social identity. The introduction of easy and cheap credit is the best way to increase the agricultural production in our country and therefore the country’s GDP will also increase. Agriculture sector is the one that depends more on credit than any other sector in the

Show More
Related

  • Three Old Worlds 1492

    1228 Words  | 3 Pages

    This means that men and women were entitled to a particular job and they were obliged to do their work. Agricultural societies assigned work in divergent ways and this helped them because there was increase in productivity.

    Read More

  • Shogunate Japan

    804 Words  | 2 Pages

    The bottom part of the society included the peasants which made up 85% of the population, the peasants was divided into sub-classes, and these sub-classes involved the farmers, craftsmen or artisans and merchants (Hackney, 2013). The highest ranking of the peasants were the farmers, farmers who owned their own lands were ranked higher than those who did not. After the farmers, there were the craftsmen or artisans. The craftsmen or artisans worked word and metal and some of them became well-k...

    Read More

  • The Influence of the Populist Platform on America

    1238 Words  | 3 Pages

    The smallholders (farmers) were in “the midst of a nation brought to the verge of moral, political and material ruin” (Foner, 2013,p.642). They have been faced by numerous struggles politically as well as economically. To begin with, they were denied the right to direct vote and choose a representative to remedy their problems. Corruption has manifested through the congress and legislatures. The capitalists hav...

    Read More

  • Analysis Of Stuffed And Starved

    2185 Words  | 5 Pages

    Our nation was founded on agriculture, and for hundreds of years we were able to migrate across the nation bringing our farming tools and techniques with us. Technology has driven populations away from rural areas towards industrialized cities. With money now being pumped into cities, rural farmers are suffering the most. Farmers are taking out large loans in order to sustain their farms, leading to debt and in some cases suicide. Patel spoke about a farmer in India whose husband took his life because he was unable to live with the amount of debt from his struggling farm. This man left his wife and chi...

    Read More

  • The Agricultural Revolution And The Industrial Revolution

    901 Words  | 2 Pages

    Before the industrial revolution, villagers practiced communal farming, in which residents worked together to farm on a large lot of land. Part of the land was divided up into three different crop fields. One for wheat or rye, one for oats or beans, and one for fallow. The fourth section of land was left to give livestock a place to graze, plant wild plants, and store firewood for the winter. The Enclosure Movement helped propel the shift from agriculture to industry. With this movement, agriculture was used for commercial practices and not so much as a way to feed single families. Before the start the Enclosure Movement, villages practiced communal farming in which the land and what was grown and raised on it was shared between the residents. However, this way of farming changed as effects of the Enclosure Movement made their way into the villages. Communal farms were divided up into single-family farms, with each family receiving and equal share of land. The owners of the land were rich families. These owners lease the land to farmers. During the enclosure movement, the land owners wrote new leases to individual families. These leases usually lasted 19 years and every family that lived in the village had the right to get a lease. People who got very small farms could not survive on their own without the right to use the common land, of which there was little to no land because it had been divided up. Therefo...

    Read More

  • Rising Food Prices

    1504 Words  | 4 Pages

    ...earch and extension, rural infrastructure, and market access for small farmers. Rural investments have been sorely neglected in recent decades, and now is the time to reverse this trend. Farmers in many developing countries are operating in an environment of inadequate infrastructure like roads, electricity, and communications; poor soils; lack of storage and processing capacity; and little or no access to agricultural technologies that could increase their profits and improve their livelihoods. Recent unrest over food prices in a number of countries may tempt policymakers to put the interests of urban consumers over those of rural people, including farmers, but this approach would be shortsighted and counterproductive. Given the scale of investment needed, aid donors should also expand development assistance to agriculture, rural services, and science and technology.

    Read More

  • Agriculture And Climate Change Essay

    1420 Words  | 3 Pages

    The backbone of a stable nation, socially and politically, is agriculture. Agriculture is the largest sector that provides a nation with food and employment. Agriculture is currently being affected by climate change and at the same time it is also a contributor to climate change. The drastic elevations in climate change started from the mid to late 20th century and they have been increasing since then (Boisvenue & Running 2006). Climate change is affecting agriculture by interfering with the efficiency of crop production. Agriculture is facing droughts, flooding, sea level elevations, natural disasters, and health hazards for employees. All of these exponents lead to crop failure that creates famines and food prices to rise. On the other side, agriculture is also contributing to climate change through their output of greenhouse gas emissions and carbon footprints. These are caused by the activities that agriculture engages with such as breeding of livestock, ploughing of fields, deforestation, and the use of pesticides and other agrochemicals. Climate change affects countries differently, mainly due to their ability to adapt and their geographical location. Canada and Russia benefit from the changes in climate while Sudan and Bangladesh are affected negatively, struggling to adapt. Agriculture and climate change are interrelated processes that exist mutually making it harder to reduce one without affecting the other.

    Read More

  • Effects of Agriculture on the Environment

    2078 Words  | 5 Pages

    As agriculture has become more intensive, farmers have become capable of producing higher yields using less labour and less land. Growth of the agriculture has not, however, been an unmixed blessing. It, like every other thing, has its pros and cons. Topsoil depletion, groundwater contamination, the decline of family farms, continued neglect of the living and working conditions for farm labourers, increasing costs of production, and the disintegration of economic and social conditions in rural communities. These are the cons of the new improved agriculture.

    Read More

  • Sustainable Development Goals Analysis

    805 Words  | 2 Pages

    Private international investments in agriculture are needed and can play an important role in boosting food securities since Africa’s economy depends largely on agricultural sector. However, in order to increase the progressive impact of these investments governments need to create policies and legislation that can create a more favourable climate for inclusive and sustainable investments taking into account the corruption within our governments. The implementation of the Sustainable Development Goals will require huge financial and technical resources and human skills. In this regard, the African Development Bank continues to support its Regional Member Countries through effective financial and technical

    Read More

  • The Industrial Revolution And The Development Of Sociology

    1014 Words  | 3 Pages

    Different states go through different types of political and economical systems through a life time. In this case, most of the agricultural society was largely supported by the feudal system social hierarchy. Karl Marx defined feudalism as the power of the ruling class based on the control of “arable land”, this in turn affected class society based on the exploitation of the peasants who farm these lands (Beitscher and Hunt, 2014). In the feudal system, most of the rights and privileges were given to the upper classes. In this hierarchical structure, the kings occupied the highest position, followed by barons, bishops, knights and peasants (History-world.org, 2014).Feudalism is considered to be the “medieval” form of government (Beitscher and Hunt, 2014). Before capitalism came around as an economic model most states were a feudalistic country. These systems had an affect on society due to the fact it impacts citizens by “controlling” how they live and interact. The peasants were required to work for the nobles in return for land. This hierarchy was fuelled by the religious assumptions of the time that stated kings, dukes and other nobles served by the will of God over everyone else lower down the social order (Beitscher and Hunt, 2014). As industrialism provided a much more technical understanding of the world, it challenged these religious assumptions for the social

    Read More

  • An Argument for Farmers Needing Help

    865 Words  | 2 Pages

    Farmers have no specific amount of money that they are going to receive each year. This unreliability upon income causes financial problems when a family is involved.

    Read More

  • Importance Of Agriculture Essay

    1207 Words  | 3 Pages

    To understand why is agriculture important in the world of today, then first of all we must know what agriculture is? Agriculture is the basic material production of society, the use of land for agriculture and livestock, mining plants and animals as raw materials and labor to produce mainly food and some raw materials for industry. Agriculture is a major industry, covering many disciplines: planting, breeding and processing of agricultural products; in the broadest sense, also including forestry and fisheries. Agriculture is an important economic sector in the economy of many countries, especially in the past century , when the industry has not yet developed. Since the dawn of history, agriculture has been one of the importance means of producing

    Read More

  • Importance Of Food Accessibility

    1654 Words  | 4 Pages

    This can be enhanced through promoting small holder production mostly in rural areas. In Chivi, emphasis must be given to small grains production due to their ability to survive in harsh conditions. Chivi District is characterised with recurrent droughts and rainfall variability which has consistently reduced agricultural production in the area and resulted in high levels of food insecurity. The production of finger millet in Chivi has increased food accessibility to those farmers who have adopted this production. Finger millet and sorghum are drought resistant crops and this has made them to be more preferable in dry and hot areas like Chivi. Farmers that produce small grains harvest better even in bad seasons and this will promote their food security. Households that produce small grains, food accessibility is within their reach. This shows that small grain farmers can no longer go without food as compared to farmers who produce

    Read More

  • Hunger in India

    930 Words  | 2 Pages

    Krishnaraj, Maithreyi. 2006. “Food Security, Agrarian Crisis and Rural Livelihoods.” Economic and Political Weekly 41 (52): 5376-5388.

    Read More

More about What Are The Importance Of Agricultural Credit?

Open Document