Full Article: PDF
Scientific Object Identifier: http://s-o-i.org/1.1/TAS-01-105-19
DOI: https://dx.doi.org/10.15863/TAS.2022.01.105.19
Language: English
Citation: Shaniyazova, Z. (2022). The constraints of agricultural credit and government policy strategy. ISJ Theoretical & Applied Science, 01 (105), 288-292. Soi: http://s-o-i.org/1.1/TAS-01-105-19 Doi: https://dx.doi.org/10.15863/TAS.2022.01.105.19 |
Pages: 288-292
Published: 30.01.2022
Abstract: Inadequate loan availability in agriculture is also a result of issues with agricultural sector actors (particularly farmers) and financial institutions. Farmers continue to face barriers to credit (accessibility and unbankability) and the limited financial institutions that provide loans to agriculture. As a result, the government must implement a policy aimed at expanding the agricultural industry, particularly in light of farmer access to finance limits. Because agriculture is a high-risk business, formal institutions are less interested in funding it due to high transaction costs, asymmetric knowledge, low profitability, and a lack of collateral. Additionally, farmer education is relatively low. Additionally, due to unpredictable production and uncontrolled pricing risk, the majority of banks are unable to finance agriculture. While the farmers' constraints in obtaining formal loans are complex, they should include collateral, expensive payment delay fees, extensive distances, and a lack of information regarding capital.
Key words: agriculture, credit, government subsidies, government policy, bank loans, credits, agriculture behavior.
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