Critical Review of Past Literature of Agricultural Credit in the Developing World

Abstract

Agriculture credit play key role in the development of agriculture and without credit the development of agriculture is impossible. Every country in the developing world has arranged financial institution for solution of credit problem. Seeing to its importance the present study was arranged to critically review the past literature of agriculture credit to what extent the agriculture credit institution solve the problems of the farmers in the developing world. Total 75 studies were selected for the study. All studies were reviewed and analyzed the situation to what extent they solve the financial problems of the developing world. The result indicates that that the Developing World majority farmers are very poor and without credit the agriculture development is impossible. All governments have arranged financial institutions for loan provision in the rural areas while influential farmers get the loan more than the non influential farmer. The land lord spend money on the banker while the small land holder cannot access to them, so the bankers give more loan to landlord and not give full attention to small land holder. In developing world credit institutions have not arranged on the basis of actual needs of the farmers. Poor farmers when get the loan they spend 75% on the consumption goods while 25% loan on the inputs of the farming. The poor farmers cannot get the target production which is obtained in the developed world. So due to less production the farmers become the defaulter of the bank and sell  the land for returning the loan to the banker, which instead of benefits give loss to the farmers. It was also observed in the critical review that the farmers of the developing world is not highly educated, so they face problems in the adaptation of modern technology and awareness about the new technology application in the field. The study further explains that credit impact on the farmer production is positive while the monitoring cell checking in the developing world is very poor. They provide the loan to the farmers while monitoring cell does not check the loan where the loan have been utilized. The study also reflects that the banker number in the developing world is less than the requirement. So they charge high interest rate on the credit which is great problem for the farmers in the developing world. The security procedures in the banks are very complicated which not attract the farmers for loan obtaining. The extension staffs in the developing world do not perform the duty in proper way to help the farmer for uplifting agriculture production whose offices are in the urban area and their duties are in the rural , so the farmers can not trained by extension staff on regular basis. The developing world majority farmers are very poor and they always in the problems, born in the debts and die in the debts while cannot come out from the vicious circle. On the basis of finding, the study recommend  to increase the supply of credit in the developing world; Free interest loan should be provided to farmers  in the developing world; Tight monitoring cell for credit checking should be implemented by government; Peace is required in  world developing zone for agriculture development; Support  and subsidized price for farmer protection is requested; Good marketing facilities for agriculture products is required; Soil testing laboratories are requested for checking of the soil; Developed irrigation system  is required; Inputs on low price should be provided to farmers in the developing world; High yield varieties should be supplied to farmers; High level Agriculture Universities should be established in the developing world for quality  agriculture students production;  Agriculture minister should have Ph.D Degree in agriculture; Tax on agriculture crops and on machinery should be removed . Good infrastructure should be developed in the developing world.  Extra help of the farmer is requesedt in the developing world

Keywords: Critical Review, Past Literature, Agriculture Credit, Developing WorldI.