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[Audio] Lesson 01 Agricultural Finance- meaning, scope and significance, credit needs and its role in Indian agriculture MM Animate the title Show the text in sync with the VO OST As shown on the screen VO Let us start with the Lesson 01 Intoduction to weeds.

[Audio] Introduction Meaning of Agricultural Finance: Agricultural finance - studying, examining and analyzing financial aspects pertaining to farm business - core sector of India Financial aspects - money matters - production of agricultural products and their disposal/ marketing Study of agricultural finance - two aspects - acquisition of funds and optimum utilization of funds within the farm business Definition of Agricultural finance: Murray (1953) - Agricultural Finance - an economic study of borrowing funds by farmers, organization and operation of farm lending agencies and of society’s interest in credit for agriculture .” Tandon and Dhondyal (1962) - Agricultural Finance - branch of Agricultural Economics - with and financial resources - individual farm units VO Introduction Meaning of Agricultural Finance: Agricultural finance generally means studying, examining and analyzing the financial aspects pertaining to farm business, which is the core sector of India. The financial aspects include money matters relating to production of agricultural products and their disposal/ marketing. The study of agricultural finance involves two aspects i.e. acquisition of funds and optimum utilization of funds within the farm business Definition of Agricultural finance: Murray (in 1953) defined Agricultural Finance as "an economic study of borrowing funds by farmers, the organization and operation of farm lending agencies and of society's interest in credit for agriculture ." Tandon and Dhondyal (1962) defined Agricultural Finance "as branch of Agricultural Economics, which deals with and financial resources related to individual farm units.".

[Audio] Objectives By the end of this lesson you will be able to learn Meaning, definitions, scope of Agricultural finance Credit needs in agriculture Role of agricultural finance in India Agriculture Vo Objectives By the end of this lesson you will be able to learn To explain about the meaning, definitions, scope of Agricultural finance. To elucidate credit needs in agriculture. To explain the role of agricultural finance in India Agriculture..

[Audio] Nature & Scope Both micro level and macro level Macro-finance - different sources of raising funds for agriculture as a whole in the economy Lending procedure, rules, regulations, monitoring and controlling of different agricultural credit institutions Macro-finance - to financing of agriculture at aggregate level Financial management of the individual farm business/units - concerned with study how the individual farmer considers various sources of credit, quantum of credit to be borrowed from each source and how he allocates the same among the alternative uses within the farm With the future use of funds Macro-finance - aspects relating to total credit needs of agricultural sector, terms and conditions under - credit is available and method of use of total credit for development of agriculture while micro-finance refers to financial management of individual farm business VO Nature & Scope of Agricultural finance : Agricultural finance can be dealt at both micro level and macro level. Macro-finance deals with different sources of raising funds for agriculture as a whole in the economy. It is also concerned with the lending procedure, rules, regulations, monitoring and controlling of different agricultural credit institutions. Hence macro-finance is related / pertains to financing of agriculture at aggregate level. Micro-finance refers to financial management of the individual farm business/units. And it is concerned with the study how the individual farmer considers various sources of credit, quantum of credit to be borrowed from each source and how he allocates the same among the alternative uses within the farm. It is also concerned with the future use of funds. Therefore, macro-finance deals with the aspects relating to total credit needs of the agricultural sector, the terms and conditions under which the credit is available and the method of use of total credit for the development of agriculture while micro-finance refers to the financial management of individual farm business..

[Audio] Credit needs in Agriculture Agricultural credit - most crucial inputs in all agricultural development programmes Major source of agricultural credit was private moneylenders - inadequate, highly expensive and exploitative To curtail this - a multi-agency approach - cooperatives, commercial banks and regional rural banks- institutional credit - adopted to provide cheaper, timely and adequate credit to farmers The financial requirements/credit needs of the Indian farmers - Buying of agricultural inputs - seeds, fertilizers, plant protection chemicals, feed & fodder for cattle etc Support families in years – when crops not been good or adequate for purpose Buying additional land - improvements on existing land, to pay off old debt and to purchase costly agricultural machinery To increase the farm efficiency as against limiting resources - hiring of irrigation water lifting devices, labor and machinery Vo Credit needs in Agriculture Agricultural credit is one of the most crucial inputs in all agricultural development programmes. For a long time, the major source of agricultural credit was private moneylenders. But this source of credit was inadequate, highly expensive and exploitative. To curtail this, since independence, a multi-agency approach consisting of cooperatives, commercial banks and regional rural banks i.e. institutional credit has been adopted to provide cheaper, timely and adequate credit to farmers. The financial requirements/credit needs of the Indian farmers are meant for, Buying of agricultural inputs like seeds, fertilizers, plant protection chemicals, feed & fodder for cattle etc. Support their families in those years when the crops have not been good (or) adequate for the purpose. Buying additional land, to make improvements on the existing land, to pay off old debt and to purchase costly agricultural machinery. To increase the farm efficiency as against limiting resources i.e. hiring of irrigation water lifting devices, labor and machinery..

[Audio] Significance (or) Importance of Agricultural finance: Farm finance / Agril. finance - vital / significant importance in agro – socio – economic development of the country both at macro and micro level It is playing a catalytic role in strengthening the farm business and augmenting / improving the productivity of scarce resources Ex: When newly developed potential seeds are combined with purchased inputs - fertilizers & plant protection chemicals in appropriate / requisite proportions - higher productivity Use of new technological inputs purchased through farm finance - agricultural Productivity Accretion to / increasing in farm assets and farm supporting infrastructure - large scale financial investment activities result in increased farm income levels - increased standard of living of rural masses Farm finance - reduce regional economic imbalances and is equally good at reducing the inter–farm asset & wealth variations Farm finance - lever with both forward & backward linkages to economic development at micro and macro level Vo Significance (or) Importance of Agricultural finance: Farm finance / Agril. finance assumes vital / significant importance in the agro – socio – economic development of the country both at macro and micro level. It is playing a catalytic role in strengthening the farm business and augmenting / improving the productivity of scarce resources Ex: When newly developed potential seeds are combined with purchased inputs like fertilizers & plant protection chemicals in appropriate / requisite proportions will result in higher productivity. Use of new technological inputs purchased through farm finance helps to increase the agricultural Productivity. Accretion to / increasing in farm assets and farm supporting infrastructure provided by large scale financial investment activities result in increased farm income levels leading to increased standard of living of rural masses. Farm finance can also reduce the regional economic imbalances and is equally good at reducing the inter–farm asset & wealth variations. Farm finance is like a lever with both forward & backward linkages to the economic development at micro and macro level. As Indian agriculture is still of traditional & subsistence in nature, Agricultural finance is needed to create the supporting infrastructure for adoptions of new technology. Massive / huge investment is needed to carry out major & minor irrigation projects, rural electrification, installation of fertilizer & pesticide plants, execution of agricultural promotional programmes and poverty alleviation programmes in the country..

[Audio] Significance (or) Importance of Agricultural finance 7) As Indian agriculture- still of traditional & subsistence in nature, Agricultural finance - to create supporting infrastructure for adoptions of new technology 8) Massive / huge investment - to carry out major & minor irrigation projects, rural electrification, installation of fertilizer & pesticide plants, execution of agricultural promotional programmes and poverty alleviation programmes in the country Vo 7) As Indian agriculture is still of traditional & subsistence in nature, Agricultural finance is needed to create the supporting infrastructure for adoptions of new technology. 8) Massive / huge investment is needed to carry out major & minor irrigation projects, rural electrification, installation of fertilizer & pesticide plants, execution of agricultural promotional programmes and poverty alleviation programmes in the country..

[Audio] Summary In this lesson we have learnt about Meaning, definitions, scope of Agricultural finance Credit needs in agriculture Role of agricultural finance in India Agriculture MM Show text in sync with the VO OST As shown on the screen VO Summary In this lesson we have learnt about Meaning, definitions, scope of Agricultural finance Credit needs in agriculture Role of agricultural finance in India Agriculture.

[Audio] Multiple Choice Question Generally means studying, examining and analyzing the financial aspects pertaining to farm business is known as. Agricultural finance b) Farm Finance c) Both a & c d) none of these 2. The financial management of the individual farm business/units is called as Agricultural micro finance b) Agricultural macro-finance c) Both a & c d) none of these VO: Multiple Choice Questions Generally means studying, examining and analyzing the financial aspects pertaining to farm business is known as. Agricultural finance b) Farm Finance c) Both a & c d) none of these 2. The financial management of the individual farm business/units is called as Agricultural micro finance b) Agricultural macro-finance c) Both a & c d) none of these.