Implications of farm credits

Agricultural science for S.S.S 1 Third Term

Week 10

Implications of farm credits

PERFORMANCE OBJECTIVES

Students should be able to:

1. List and discuss problems faced by farmers in procuring agricultural credit.

Content

Implications of farm credits or problems militating against farmers in securing loans.

The procurement of loans or credits for farming activities is associated with some implications. In other words, farmers find it difficult to get loans from banks because of the following reasons:

1. Interest rate:

Interest rate is the rate at which farmers can borrow money from the bank, i.e., the amount of interest a farmer will have to pay on the money borrowed. High-interest rate discourages borrowing while low-interest-rate encourages borrowing. Therefore, farmers cannot borrow when the…