Agriculture is a major part of human existence. The food products we consume on a daily basis are all proceeds from agricultural activities. A world without agriculture is a world without food. Likewise, agriculture is equally a major part of an economy. This is because it informs the level of food production and allocation. It also determines what food is produced in excess and which is lacking, which food to import and which to export. Being a large topic to consider, this agricultural science project topic intends to ascertain the role of financial institutions in agricultural development.
The role of agriculture in economic development
Agriculture play significant roles in a economy and that includes:
To increase food supply for domestic consumption
Increase supply of domestic savings
To promote international trades
To increase job opportunities
Now the role of financial institution in agricultural development should not be overemphasized, and while this research project topic does justice to it, let us look at issues that results to poor performance in the agricultural sector.
They include:-
Lack of funds
Inadequate supply and use of quality farm inputs
Economic policy
Land constraints
Poor harvest technology
Poor storage facility
Paste and diseases
Environmental pollution
Lack of labor
Low adoption rate
Bad roads and lots more
So far, we have seen farmers join cooperatives to help themselves and to improve their turnover. Some take loans from financial institutions to scale their farming. But it looks like farmers, especially commercial ones, will need incentives from financial institutions to enhance their production scale. And that may include;
Establishment of agricultural cooperative banks
Issuing loans to farmers
Issuing loans to farmers cooperative
Establishment of agricultural agencies that will protect farmers interest in the face of the government and financial institutions.
For further reading, see the project topic above for detailed research work
