Agriculture credit refers to financing obtained by farmers for farming operations. It includes loans, lines of credit, and other financial products to purchase equipment, seeds, fertilizers and other inputs. Agriculture credit is essential for agricultural development by enabling investment and increased productivity. Governments often offer agriculture credit programs to support smallholder farmers with limited access to financing.

1. AGRICULTURE
CREDIT
JATIN KUMAR
MBA(I&b)
A2828421001

2. • Agriculture credit refers to the financing that
farmers and other agricultural producers can
obtain to help them with their farming operations.
• This credit can come in many forms, including
loans, lines of credit, and other types of financial
products that can be used to purchase equipment,
seeds, fertilizers, and other inputs.
• Agriculture credit is essential for the development
of the agricultural sector, as it enables farmers to
invest in their businesses and increase their
productivity.
• In many countries, governments offer agriculture
credit programs to support smallholder farmers,
who may have limited access to financing from
commercial banks.

3. DIRECT &
INDIRECT
AGRICULTURE
CREDIT
• Direct agriculture credit refers to loans and other
financial products that are specifically designed for
agricultural producers, such as farmers and ranchers.
These loans are provided by financial institutions, such as
banks, credit unions, or specialized agricultural lending
institutions, directly to the farmers.
• Indirect agriculture credit, on the other hand, refers to
loans or other financial products that indirectly support
agricultural production but are not specifically designed
for farmers. These loans can be provided to processors,
traders, and other agricultural supply chain actors who
support the production, processing, and distribution of
agricultural products.

4. KISAN CREDIT CARDS
• Kisan Credit Cards (KCC) are a type of credit facility
that is specifically designed for farmers in India. The
Kisan Credit Card scheme was launched by the
Government of India in 1998 with the aim of
providing farmers with easy access to credit to meet
their farming needs.
• Under the KCC scheme, farmers are issued a credit
card that can be used to access credit from banks or
other financial institutions. The credit limit on the
card is determined based on the farmer's landholding,
crop pattern, and other factors. Farmers can use the
credit card to purchase inputs such as seeds,
fertilizers, pesticides, and other agricultural
equipment

5. • The Kisan Credit Card scheme has several benefits for
farmers, including lower interest rates, flexible repayment
options, and easy access to credit. Farmers can also use the
credit card to withdraw cash from ATMs and make other
purchases, providing them with greater financial
flexibility.
• Overall, the Kisan Credit Card scheme has been an
important tool for supporting agriculture in India and
improving the livelihoods of farmers. The scheme has
helped to increase agricultural productivity, promote rural
development, and reduce poverty among farmers.

6. INVESTMENT CREDIT
• Investment credit in agriculture refers to financing that
is specifically targeted towards agricultural investments
such as land acquisition, farm infrastructure
development, purchase of farm machinery and
equipment, irrigation systems, and other investments
that improve agricultural productivity and profitability.
• Investment credit in agriculture can be provided by
various sources such as government-supported financial
institutions, commercial banks, and other financial
institutions that specialize in agricultural financing

7. • Investment credit in agriculture is crucial for the development of the sector, as it
enables farmers and agricultural investors to make long-term investments in their
businesses that enhance productivity, increase incomes, and create employment
opportunities in rural areas.
• The use of investment credit in agriculture can lead to increased agricultural
production, improved food security, and enhanced economic growth in rural areas.
It can also promote sustainable agricultural practices that conserve natural
resources and reduce environmental degradation.
• In summary, investment credit in agriculture is an important tool for promoting
agricultural development, supporting the growth of rural economies, and
improving the livelihoods of farmers and other agricultural investors.

8. Loans for Farm Mechanization
and Minor Irrigation Schemes
• In India, loans for farm mechanization and minor
irrigation schemes are available through various
government schemes and financial institutions.
These loans are designed to support farmers who
wish to invest in farm machinery and irrigation
systems to enhance their agricultural productivity.
• The government of India provides several
schemes to support farm mechanization and minor
irrigation, such as the Rashtriya Krishi Vikas
Yojana (RKVY), Pradhan Mantri Krishi Sinchai
Yojana (PMKSY), and the National Bank for
Agriculture and Rural Development (NABARD).

9. • Under these schemes, farmers can avail loans for
purchasing farm machinery such as tractors, power
tillers, threshers, harvesters, and other implements.
Similarly, farmers can also avail of loans for setting up
minor irrigation systems such as wells, pumps, and
sprinklers.
• The loans for farm mechanization and minor irrigation
schemes in India are offered at low-interest rates with
flexible repayment terms, which are tailored to meet
the unique needs of farmers. The loans are often
secured against the agricultural land owned by the
borrower or other forms of collateral.
• These loans have several benefits for farmers,
including increased productivity, reduced labor costs,
and improved crop yields. The use of modern
machinery and irrigation systems can also enhance the
quality of crops and reduce the risk of crop failure due
to drought or other weather-related events.

10. Dairy Loans -Agricultural
advances for Production of Crops
• Dairy loans are a type of agricultural loan that is
specifically designed for farmers who wish to
invest in dairy production. These loans are
offered by financial institutions such as banks and
other agricultural lending institutions to farmers
who own or plan to own dairy animals, such as
cows or buffaloes.
• Dairy loans can be used to finance various
aspects of dairy farming, including the purchase
of dairy animals, the construction of dairy sheds,
the purchase of feed, the installation of milking
equipment, and other related expenses.

11. • These loans are often secured against the dairy
animals or other forms of collateral and come
with flexible repayment terms, allowing farmers
to repay the loan over a period of several years.
• In addition to dairy loans, agricultural advances
for the production of crops are also available to
farmers. These loans can be used to finance
various aspects of crop production, including the
purchase of seeds, fertilizers, pesticides, and
other inputs.
• Like dairy loans, agricultural advances for crop
production are offered at low-interest rates with
flexible repayment terms, and the loans are often
secured against the crops or other forms of
collateral.
• Both dairy loans and agricultural advances for
crop production are essential for supporting
agricultural production in India. These loans help
farmers to invest in modern technologies and
inputs that enhance their productivity, increase
their profitability, and improve their livelihoods.

12. Allied Activities
Allied activities in agriculture refer to non-farming
activities that are closely related to agriculture and can
provide additional sources of income for farmers. These
activities include:
• Horticulture: This involves the cultivation of fruits,
vegetables, flowers, and ornamental plants.
Horticulture is a high-value crop that can provide
farmers with significant income.
• Sericulture: This involves the cultivation of silkworms
for the production of silk. Sericulture is a labor-
intensive activity that provides farmers with additional
income.
• Apiculture: This involves the cultivation of honeybees
for the production of honey and other bee products.
Apiculture can be a profitable activity for farmers, as
honey and other bee products have high demand in the
market.

13. • Animal husbandry: This involves the rearing of
livestock such as cows, buffaloes, goats, sheep,
and poultry. Animal husbandry can provide
farmers with additional income through the sale
of milk, meat, eggs, and other livestock products.
• Fishery: This involves the cultivation of fish in
ponds, tanks, and other water bodies. Fishery can
provide farmers with additional income through
the sale of fish and other aquatic products.
• These activities also provide opportunities for
entrepreneurship and innovation in rural areas,
creating employment opportunities and
contributing to the overall development of the
rural economy.

14. Investment Credit -
composite term loan
against the mortgage of
agricultural land, Land
Purchase Scheme,
financing for draught
animals and carts,
Debt Swap Scheme
Investment credit in agriculture refers to
the financial support provided to farmers
for making long-term investments in
agriculture, such as purchasing
agricultural land, acquiring equipment,
and modernizing their farming practices.
Here are some examples of investment
credit schemes in India:

15. • Composite term loan against the mortgage of agricultural
land: This scheme provides farmers with a composite
term loan that can be used for various purposes, such as
purchasing agricultural equipment, inputs, and improving
infrastructure. The loan is secured against the agricultural
land owned by the borrower
• Land Purchase Scheme: This scheme provides financial
assistance to farmers for purchasing agricultural land.
The loan is provided at a low-interest rate, and the
repayment term is extended over several years.
• Financing for draught animals and carts: This scheme
provides financial assistance to farmers for purchasing
draught animals such as bullocks and carts. The loan is
secured against the animals and carts, and the repayment
term is flexible.

16. • Debt Swap Scheme: This scheme allows farmers
who are struggling to repay their existing loans
to swap their high-interest loans with a low-
interest loan from a financial institution. The
scheme helps farmers to reduce their debt burden
and improve their financial condition.
Investment credit schemes play a crucial role in
supporting agricultural development in India.
They provide farmers with the financial resources
they need to invest in modern technologies,
improve their farming practices, and enhance their
productivity and profitability.