Ebooks

Preface World as well as Indian Agriculture is dynamic and constantly changing. Being core courses of Agricultural Economics subjects like Agricultural Finance & Cooperation assumes vital and significant importance in the agro–socioeconomic and environmental development of the country both at macro and micro level. It is playing a catalytic role in strengthening the farm business and augmenting the productivity of scarce resources by balancing environmental condition. Farm finance can also reduce regional economic & environment imbalances, and is equally good at reducing the inter–farm asset and wealth variations. This book “Agricultural Finance & Cooperation” is about an introduction on Agricultural Finance & Cooperation. It emphasizes on the basic idea of agricultural based financial investment and promotion strategies adopted along with management hierarchy in India. The book is having 10 chapters where concepts are nicely explained by theoretical conceptual frame work along with graphs or pictures followed by objective exercises & workspace for practices. The book also discusses the history, purpose and functions of key financial institutions and rural development programmes. The entire book is written in straight forward language for simple comprehension. It will suit the course for undergraduates in agricultural universities, rural universities and traditional universities. Students, professors, and researchers who work in applied economics, management of farm & natural resources etc. can use it as a reference book also. It is passionately hoped that students will make the best use of the book to gain sufficient knowledge and practice for the recommended syllabus and for other competitive exam as well as beneficial for faculties.

Abstract Agricultural development interventions need agricultural financing to increase productivity. This study investigates what factors influence farmers’access and use of agricultural loans, what challenges they face in obtaining and repaying loans, and how financial support affects their income outcomes. The study also suggests some policy actions to improve the supply and performance of agricultural loans for farmers. 1.1. Meaning Agricultural finance generally means studying, examining and analysing the financial aspects pertaining to farm business, which is the core sector of India. The financial aspects include money matters relating to production of agricultural products and their disposal.

Abstract This chapter examines how agricultural credit is a vital input for all agricultural development programmes. Private moneylenders used to be the main source of agricultural credit. However, this source was insufficient, costly and oppressive. To overcome this, a multi-agency approach involving cooperatives, commercial banks and regional rural banks has been adopted to provide cheaper, timely and adequate credit to farmers.  

Abstract Most farmers in India lack capital. They need credit at the right time, from the right agency, and in adequate amounts to be productive. From the farmer’s perspective. When a farmer applies for a loan from an Institutional Financial Agency (IFA), the lender must be convinced of the 3 R’s, 5 C’s, and 7 P’s, which indicate the economic viability of the proposed investments.

Abstract Agriculture, like any other economic activity, needs finance. Crop productivity in India is low due to traditional farming practices and agricultural production must increase to achieve self-sufficiency and save foreign exchange. Therefore, credit is vital for enhancing agricultural production. Credit helps develop fixed farm assets and can be classified into short-term loans, medium-term loans, and long-term loans, according to studies on the relationship between agricultural growth and credit availability. However, credit withdrawal might cause a decline in conditions, while credit provision with stagnant production conditions won’t improve output. Since production conditions are dynamic, loan requirements would grow from year to year even if input stay constant.

Abstract Rural indebtedness is an old problem in India. In the 19th century commercial banking was absent in rural areas and farmer were entirely in the hand of usurious moneylender. Since the British rule, the central government has been trying to extend institutional lending to the rural agriculture sector. To provide credit to the agricultural sector, a multi-agency approach involving co-operative banks, scheduled commercial banks, and RRBS has been used in India. Adequate and timely loan availability at reasonable rates is the basis for agricultural finance policy. The institutional structure for agricultural lending has improved over time in terms of scope and reach. India’s higher education institutions have been focusing their efforts on advancing agricultural finance.

Abstract Many obstacles hinder agriculture credit in rural regions: insufficient funding, failure to reach vulnerable rural residents, especially marginal and small farmers, and lack of local focus in agriculture credit distribution. India adopted a “Social and Development Banking” policy after nationalizing commercial banks in 1969. This policy aimed to solve some of these issues and boost the supply of formal credit to the agriculture sector. Rural communities would benefit from more loans at competitive interest rates due to this policy. In the 2000s, agriculture credit grew annually by 17.6%, much higher than the 2.6% growth rate in the 1990s. The increase in agriculture credit had three distinct features: indirect financing, a sharp rise in loans of Rs. 10 crore and above, and growing availability of agriculture credit through urban bank branches. The revival of agriculture lending in the 2000s mostly benefited small farmers and marginal farmers

Abstract Financial analysis evaluates the performance and suitability of enterprises, projects, budgets, and other financial-related institutions. It determines if a business is secure, financially sound, liquid, or profitable enough to warrant a financial commitment. Accurate records and financial statements provide the essential information for analyzing the financial situation and trends of a farm operation. A financial analyst examines the income statement, balance sheet, and cash flow statement.

Abstract This chapter explains SWOT analysis, a tool for corporate planning to evaluate how an organisation compares with its rivals. It stands for strengths, weaknesses, opportunities, and threats. Albert Humphrey is traditionally considered the originator of the plan in the 1960s, but this claim is disputed. No one agrees on who created it. It has become useful for differentiating from and finding a niche within the larger market. It is also called the SWOT Matrix. SWOT Analysis is a tool that can apply outside of business to analyse a person’s status against their competitors. The tool considers both internal and external factors. The terms “weaknesses” and “strengths” relate internally. The former is a characteristic of a company or other entity that gives it a disadvantage over rivals. The latter is a trait of that same entity, which gives it an advantage over its rivals. For external factors, “opportunity” are aspects of the larger environment that the entity can exploit to its benefit. However, “threats” are also realities in the larger environment, which could harm the entity.

Abstract This chapter explains the cooperation which create social relations that help individuals achieve goals that they could not achieve alone. They also help farmers benefit from economies of scale and reduce risks, and empower their members economically and socially by involving them in decision-making processes.

Abstract This chapter covers the main theories and academic perspectives used to study the role of different organizations in which they explain their vision, mission, object functioning, etc.

References