...RISK AND RISK MANAGEMENT OF RURAL AND AGRICULTURAL FINANCE (MD. IBRAHIM KHOLILULLAH, DEPT OF AG.FINANCE, BAU MOB: 01718996557) INTRODUCTION When discussing rural finance in Bangladesh, the foremost issue that merits mention is that loans to agriculture are generally offered only by specialized agricultural banks, since commercial banks and microfinance institutions largely refrain from financing the sector. There are many reasons for this, the most important of which is that this finance is strewn with risks, some of which the state is most likely to address. Hence, the governments hold ownership of these banks and their capital, and finance and support them. Agricultural banks are exposed to the above two risks. These dual risks continually expose them to losses and bank ruptcy unless they have excellent risk management practices and/or are financially supported by the government. Some of the risks that the banks encounter are, inter alia: operational risks, market risks, credit risks, and inadequacy of capital. These interrelated banking risks are faced by all commercial banks, agricultural banks and governmental banks. They may be created as a result of inadequate fund allocation, weak labour regulations, mismanagement, an unsuitable operating environment, weak training programmes, bad credit transactions and price fluctuations. Two problems must be mentioned in this regard: difficulty in measuring banking risks, and the lack of specialized management of most agricultural...
Words: 4322 - Pages: 18
...Agricultural Extension in India Booklet No. 380 Agricultural Extension Education: AEES-4 Content Preface I. Introduction II. Pre-Independence Era III. Post-Independence Era IV. Motivation V. Extension Methodology in India VI. Training of Extension Personnel VII. Extension Organization in India VIII. Extension and Women IX. Extension and Rural Youth X. Emerging Thoughts in Extension Preface Agricultural extension is an educational process which has its goal to help the rural people to build a better life by conveying the useful and needed information at appropriate time. It is essential for agricultural development. It plays a major part in technology transfer to the rural areas. Though the concept of agricultural extension started in early 16th century but the actual functioning started only after the second world war. Dr. K. T. Chandy, Agricultural & Environmental Education I. Introduction Agricultural extension is a branch of agriculture which assists the farmers to bring about continuous improvement in their physical, economic and social well being through individual and cooperative efforts. In other words, it helps in the development of an individual and the village community as a whole. It makes available to the farming community the scientific and technical information, training and guidance to solve the problems in agriculture including animal husbandry, gardening, horticulture, silviculture, agricultmal engineering...
Words: 7605 - Pages: 31
...WHO REALLY BENEFITS FROM AGRICULTURAL SUBSIDIES? EVIDENCE FROM FIELD-‐LEVEL DATA Barrett Kirwan University of Maryland Michael J. Roberts North Carolina State University February 2010 [Preliminary and Incomplete] ABSTRACT The idea that agricultural subsidies are fully capitalized into farmland values forms the foundation of the argument that subsidies are entitlements and removing them would drastically reduce farmland asset values. Surprisingly little evidence substantiates this claim. Using field-‐level data and explicitly controlling for potentially confounding variables we find that landlords only capture between 14 – 24 cents of the marginal subsidy dollar. The duration of the rental arrangement has a substantial effect on the incidence. Initially, landlords extract 44 cents of the marginal subsidy dollar, but the incidence falls by 1.5 cents with each additional year of ...
Words: 4143 - Pages: 17
...whose agricultural sector is dominated by smallholder farmers who operate several scattered plots and produce a high percentage of total food in Nigeria (Kakwagh et al, 2011). The importance of these smallholder farmers cannot be over-emphasized in Nigeria. However, with the myriad of demerits associated with land fragmentation, this phenomenon is still wide spread in...
Words: 1202 - Pages: 5
...Deforestation in Nepal Forests support biodiversity, providing habitats for wildlife, flora and a place for cattle to graze. The process of deforestation inevitably results in a decline in this biodiversity, as the removal or destruction of forest cover decreases the environment available for these various lifeforms. Forestry is one of the most important natural resources of the country of Nepal. Historically, Nepal was a vastly forested country. However, from 1990 to 2010, 24% of forest cover was lost (1,181,000 ha) . The main reasons for deforestation to this extent have been land clearings - to gain new agricultural land - and the demand for timber and in particular the demand for firewood . Nepal is one of the poorest and least developed countries in the world, with 40% of its population living below the poverty line, which is defined by the United Nations as earning less than $1.25 per day. Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population, and accounting for 40% of Nepal’s Gross Domestic Product (GDP) (WWF Nepal accessed 2010). Whilst Sherpas involved in trekking expeditions and other mountain-related tourism can earn up to $7,000 per year, the average per capita income is much lower at approximately $1400 per year (Reid, 2003). The vast majority of the country’s population – approximately 85% of the twenty five million people who live in Nepal - live in rural areas and practice subsistence farming, and as such...
Words: 1502 - Pages: 7
...Dope sheet- agricultural subsidies in India 1) What is subsidy? Subsidies are grants given to a specified public to get a desired action from their side, for instance, when government is feeling that the yield per hectare is low which can be increased by using fertilizers, than government gives fertilizers subsidies so that small farmers can purchase the fertilizer. This means that subsidy is changing the price exogenously to alter the demand and supply figures. Most controversial classes of subsidies across the world are fuel subsidies and agricultural subsidies and today we are discussing agricultural subsidies. 2) What are the latest news stories about subsidies? There is omnipresence of this word subsidy. Recently some big stories came out of this word. Some 12 stories came in month of October itself. For example a) Government is worried because they think their subsidy bill will increase this time because of good monsoons. b) Raghuram rajan, chief advisor to prime minister says we are mistargeting subsidies. c) Manpreet sing from shrimoni akali dal (sad) was thrown out of his finance portfolio because he wanted to do away with power subsidies of 3000 crore. Punjab Government is in debt of almost 150000 crore rupees. 3) Why we need subsidy, what are the benefits of subsidy as a policy? a) Inducing higher consumption/ production b) Offsetting market imperfections including internalisation of externalities c) Achievement of social policy objectives including redistribution...
Words: 3440 - Pages: 14
...Research Suggests Farm Subsidies are the Reason Americans Pay Higher Food Prices, Higher Taxes, Ending Small-Scale Farming while Destroying our Ecosystem: Michael L Ashcraft Western Governors University Background: Over 70 years ago, The Roosevelt administration announced the onset of government farm subsidies as a temporary emergency measure to help farmers earn a certain level of income. Although there have been dramatic efficiency upgrades within the farming industry, little change has been changed made regarding how the government funds farm subsidies. The basic idea of how government subsidies function, the government spends hundreds of millions of dollars to raise farmers incomes by raising the price of certain farm commodities. This increase in price encourages farmers to produce these subsidized commodities in large amounts, while encouraging consumers to buy them in small amounts (Armey, R. K., 1990). The result of producing large amounts while purchased amounts are low creates a surplus. Once a surplus occurs the government spends hundreds of millions of dollars encouraging farmers to discontinue producing the certain commodities, essentially subsidizing farmers not to farm. This policy creates great inefficiency, under the farm law passed in 1985, the Department of Agriculture has paid dairy farmers to kill 1.6 million cows and take five-year vacations from farming. Regulations have been enforced that have led to the squandering...
Words: 2071 - Pages: 9
...expected, and M&M was the only tractor company in the Indian industry that made profits. India was the worlds second largest tractor manufacturer and in the 1990s the country was expanding to more competitive markets such as the United States. M&M capitalized quickly on this opportunity and set up an assembly plant in Tomball, Texas in 1994. Elsewhere, the Indian tractor industry categorized 13 players in the Indian tractor industry on the basis of power delivered by the engines horsepower that also included three multinational corporations; New Holland, John Deere, and SAME. Because of an emphasis by the federal government on increasing share of agricultural in the gross domestic product, the flow of farm credit had been rising over the years, contributing to one of the several growth drivers in the Indian tractor industry. Agricultural businesses were entering alliances with farmers for guaranteed returns on purchase of farm purchase and large-scale irrigation projects were taking place in Indian states, which showed a potential increase in the supply of farmland. Because the infrastructure sector was...
Words: 2066 - Pages: 9
...Bangladesh is an agricultural nation. Around 48% individuals straightforwardly and more than 80% in a roundabout way rely on upon agribusiness. The Food and Agriculture Organization (FAO) considered Bangladesh as one of the thirty–seven nations in "emergencies" because of the ascent in nourishment costs. Bangladesh still is a creating nation. Around 43% are living underneath $1 a day. Horticulture alone is the most noteworthy appropriation gave area. Administration of Bangladesh needs to spend this extensive measure of cash to keep the cost of every day necessities inside the acquiring force of poor and lower working class individuals. Regardless of those endeavours cost of vital sustenance change a great deal in Bangladesh. Thus minimized...
Words: 963 - Pages: 4
...The argument for farm subsidies -- though not the ones we have now By Ezra Klein Mark Bittman makes the case for mending, rather than ending, farm subsidies: Eliminating the $5 billion in direct agricultural payments would level the playing field for farmers who grow non-subsidized crops, but just a bit -- perhaps not even noticeably. There would probably be a decrease in the amount of [high-fructose corn syrup] in the market, in the 10 billion animals we “process” annually, in the ethanol used to fill gas-guzzlers and in the soy from which we chemically extract oil for frying potatoes and chicken. Those are all benefits, which we could compound by taking those billions and using them for things like high-speed rail, fulfilling our promises to public workers, maintaining Pell grants for low-income college students or any other number of worthy, forward-thinking causes. ... But let’s not kid ourselves. Although the rage for across-the-board spending cuts doesn’t extend to the public -- according to a recent Pew poll, most people want no cuts or even increased spending in major areas -- once the $5 billion is gone, it’s not coming back. ... By making the program more sensible the money could benefit us all. For example, it could: -- Fund research and innovation in sustainable agriculture, so that in the long run we can get the system on track. -- Provide necessary incentives to attract the 100,000 new farmers Secretary of Agriculture Vilsack claims we need. -- Save more...
Words: 1104 - Pages: 5
...of agricultural export revenues. Soybeans, cashews, sugar cane, peanuts, bananas, poultry, fish and seafood are growing. Vietnam's agricultural exports are vulnerable to international price fluctuations because these exports are largely commodity based. Vietnam's agricultural fishing and forestry industries together produce over US$3 billion of goods annually. Roughly 55% of Vietnam's workforce is employed in agriculture. Commensurate with economic development, the sector had gone from a 25% share of GDP to less than 20% in 2008. Farm products accounted for 22% of the country's income in 2008, down sharply from 50% in 2005. Finally 17% of all of its exports are related to the agricultural, fisheries or food processing industries, down from 55% in 2006. Despite the trend, agriculture will continue to be very important as it raises the productivity of the 70% of Vietnam's population that lives in rural areas. Traditionally, Vietnam has protected agricultural market with regulations and high tariffs. Vietnam's WTO accession reduced tariffs and led to sharp increases in imports ($7.3 billion in agricultural goods by 2008). Key agricultural imports include dairy, tobacco and grain (wheat) to meet consumer demand, while other major agricultural imports, such as fertilizer, animal feed and pesticides support Vietnam's large agricultural sector. The key staples of the Vietnamese diet (fish and rice) are produced in abundance domestically and have naturally limited agricultural imports...
Words: 3832 - Pages: 16
...|Q. No.1 |The establishment of panchayats, block samiti and zila parishad fulfils the need of the following principle | | |(a) |The principle of leadership |(b) |The principle of grass-root | | |(c) |The principle of democratic approach |(d) |The principle of whole family approach | |Q. No. 2 |Method Demonstration as an extension teaching method is classified under | | |(a) |Individual contact |(b) |Group contact | | |(c) |Mass contact |(d) |None | |Q. No. 3 |Large group when divided into smaller groups (units) for a short period of discussion is called | | |(a) |Brain storming |(b) |Buzz session | | |(c) |Conference |(d) |Workshop | |Q. No. 4 |The modified version of a panel discussion in which three or more resource persons discuss a specific topic is called | | ...
Words: 5622 - Pages: 23
...Arguments against FDI in Retail in India 1. Predatory Pricing With its incredibly deep pockets Wal-Mart will be able to sustain losses for many years till its immediate competition is wiped out. This is a normal predatory strategy used by large players to drive out small and dispersed competition. This entails job losses by the millions. 2. Labour Displacement Another factor is that it can only expand by destroying the traditional retail sector. Till such time we are in a position to create jobs on a large scale in manufacturing, it would make eminent sense that any policy that results in the elimination of jobs in the unorganised retail sector should be kept on hold. If we assume 40 mn adults in the retail sector, it would translate into around 160 million dependents using a 1:4 dependency ratio. Opening the retailing sector to FDI means dislocating millions from their occupation, and pushing a lot of families under the poverty line. Plus, one must not forget that the western concept of efficiency is maximizing output while minimizing the number of workers involved – which will only increase social tensions in a poor and yet developing country like India, where tens of millions are still seeking gainful employment. This dislocated and unemployed horde has to be accommodated somewhere else. Agriculture already employs nearly 60% of our total workforce, and is in dire need of shedding excess baggage. That leaves us with manufacturing as the only other alternative. With...
Words: 2372 - Pages: 10
...production.[1] EFFECTS OF SUBSIDY REMOVAL In a country of power instability the removal of fuel subsidy has triggered double in the price of fuel . 1. increased price of fuel and other petroleum product 2. increase in transport fares 3. increased price of food products. The Lagos Chamber of Commerce and Industry (LCCI) has listed some of the adverse effects of the Federal Government's recent policy to deregulate the nation's downstream oil sector LCCI, in a statement, said the policy has led to fresh inflationary pressures resulting from sharp increases in transportation cost, high inflationary expectations across all sectors of the economy, and a devastating impact on the psyche of the common people as the new policy poses a serious risk to their survival. LCCI said the policy would also lead to the sharp increases in operating costs of micro and small enterprises, many of which rely on small electricity generators powered by petrol. LCCI said, if well implemented however, it is expected that the policy would benefit the economy and the citizens, in the medium to long term leading to an...
Words: 717 - Pages: 3
...Connection between Poverty and Obesity English 135 DeVry University Farm subsidy payments are over $10 billion and are authorized to make payments to people “who aren’t even farmers anymore” (Morgan, Gaul, Cohen, 2006, para. 3). This has been going on, in some cases, over 10 years (para. 6). As long as you owned the farmland, you don’t even have to be growing anything and you would continue to receive a subsidy check (para. 3). Bottom line is all these billions of dollars in government subsidies contribute to lowering the cost of processed foods; not a good occurrence if you have low-income and cannot afford the high cost of healthier foods. The processed foods are so cheap to buy and are the unhealthiest that can be consumed by any human being. They are high-density, high-calorie, high-fat junk food that the unfortunate and less-advantaged part of our society has no choice but to buy because it is all they can afford. Studies show a strong connection between poverty and obesity, the government should appoint a task force to regulate and limit or repeal farm subsidies and overproduction of certain agriculture commodities like corn that is used to create highly processed, cheaply priced, high-calorie, high-density “junk foods”, so that prices of natural whole foods can once again be competitive and give the low-income consumers healthier food choices, thus contributing to the reduction of obesity. The U.S. budget for government financial subsidies to U.S...
Words: 2526 - Pages: 11
