The market demand for smallholder agriculture finance is US$450 billion, most of which is unmet. Most of the times farmers suffer from the problem of inadequate financial state. Agricultural Finance – Trends, Issues and Challenges. 4 Preface Agriculture is, and will remain, a major global building block in achieving the Millennium Development Goals. Significance of Agricultural Finance in Agricultural and Rural Development of Pakistan “A Case Study of Qambar Shahdadkot District” ... Agriculture finance is systematically institutionalized for small farmers, agricultural development cannot be materialized. The shift from subsistence to commercial agricultural production requires funds. However, in developing countries, where agriculture is a source of livelihood for 86 per cent of rural people (International Finance Corporation [IFC], 2013), financing for investments in agriculture is scarce, even for large investors. Technical inputs can be purchased and used by farmers only if sufficient money (funds) is available with farmers. Finance in agriculture is as important as development of technologies. Without access to credit, most smallholders are restricted to farming practices that result in low levels of productivity. credit for the development of agriculture, while micro-finance refers to the financial management of individual farm business. This situation leads to borrowing from an easy and comfortable source1. Significance of Agricultural Finance: 1) Agril finance assumes vital and significant importance in the agro – socio – economic development of the country both at macro and micro level. 2) It is playing a catalytic role in strengthening the farm business and augmenting the productivity of scarce resources.
Significance of Agricultural Finance: 1) Agriculture finance assumes vital and significant importance in the agro–socio-economic development of the country both at macro and micro level. Access to finance is critical for the growth of the agriculture sector.