Impact of Agricultural Credit – An Analysis of Sample Farmer

Abstract

The financing institutions supply credit to the farmers in order to enable them to procure yield increasing inputs, minor irrigation projects, implements, machinery, power etc. and thereby, to take up scientific or improved method of cultivation. Scientific method of cultivation in its turn gives more yield, higher return and regular employment to the farmers compared to the traditional method of cultivation. As such they cannot arrange capital from own source alone for taking up this costly method of cultivation. In these hard days when there is spiraling rise in prices of inputs, labour and the like even many large farmers cannot afford to scientific method of cultivation by making huge investments from their own source.