Credit and input subsidy can be defined as the timely provision of agricultural credit and inputs to farmers at a price lower than the prevailing… Read More »Subsidising Agricultural Credit and Inputs in Nigeria
In previous articles, it was highlighted that financial institutions face numerous challenges in offering credit to farmers. When farmers take loans in Nigeria, many of… Read More »Agricultural Loan Delinquency and Diversion in Nigeria
In the previous article, it was noted that both agricultural lenders and farmers face many costs due to the risks and uncertainties of agriculture. This… Read More »Problems Encountered by Government Financial Institutions in Agricultural Lending
Agricultural production faces numerous risks and uncertainties, and lending to such ventures inevitably leads to high transactional costs for financial institutions. This article examines the… Read More »Types of Risks and Strategies to Reduce Risks in Agricultural Lending
This article discussed the net income statement, its components, and its significance in agricultural finance. Income Statement or Profit and Loss Statement An income statement… Read More »Understanding the Income Statement in Agricultural Finance
This article addresses the relationship between the variable input and the output, as well as the relationship between two variable inputs used to produce a… Read More »Product-Product Relationships in Agricultural Finance
This article discusses nine methods through which farmers may obtain the capital used in their farming businesses. These methods are categorized into internal and external… Read More »Internal Methods of Acquiring Agricultural Finance
Factors of production are not evenly distributed across the world. For instance, one country may have an abundance of fertile land, while another has a… Read More »Law of Comparative Advantage in Agricultural Finance
When financial input is a constraint, the farm manager must prudently decide how available finance should be allocated among many possible alternatives. Decisions are to… Read More »Principle of Equi-marginal Returns and Opportunity Cost in Agricultural Finance
Cost curves are critical components in price-output decisions. Costs also play a significant role in determining the bargaining power of farmers and their managerial behavior.… Read More »Cost Functions in Agricultural Finance
It was earlier explained that one method of acquiring capital is by borrowing. Borrowing involves obtaining a certain amount of funds to be repaid at… Read More »Borrowing as a Capital Acquisition Method in Agriculture
Agricultural finance plays a crucial role in the theory of agricultural development, which is fundamentally viewed as a process involving the adoption of new and… Read More »Internal and External Sources of Capital for Farm Business
Banks generally fall into the category of external institutional sources of credit for farmers. The Nigerian government had established various banking institutions to cater for… Read More »The Role of Agricultural Credit Banks
In this article, the five external sources of acquiring capital for farmers will be explored. 1. Incorporation as a Method of Acquiring Capital Forming a… Read More »External Methods of Acquiring Capital for Farm Business
When a farmer approaches an institutional agency with a loan proposal, the banker must be convinced of the economic viability of the proposed investment. Each… Read More »Three R’s and Five C’s of Credit in Farm Business
The role of financial institutions in light of technological advancements in agriculture lies in evolving principles of farm finance that aim to bring both commercial… Read More »Seven Ps’ of Credit in Farm Business
By all possible means, a farm financial manager has to raise the capital for running the farm business. The sources through which capital can be… Read More »Acquisition of Capital and Attendant Risks in Farm Business
Every farm financial manager has to assess the performance of his business, in order to act suitably. Various tools of financial analysis, viz., farm planning… Read More »Planning and Budgeting in Farm Business
As a crucial budgeting tool, the net worth statement, often referred to as the balance sheet, is essential for decision-making in farm business. It provides… Read More »Understanding the Net Worth Statement in Farm Business
Some scholars argue that the lack of credit in sufficient quantity is a major constraint to agricultural development. They rest their argument on the fact… Read More »Importance of Credit to the Farmers
The problem of input choice assumes vital importance, particularly when alternatives for producing a given product are available. Most agricultural products are produced with two… Read More »Input-Input Relationships in Agricultural Finance
