(a) Define the following terms as used in agricultural economics:
(i) assets;
(ii) Liabilities
(b) Mention three problems encountered by farmers in obtaining agricultural credits
(c) Enumerate four roles of an agricultural extension agent
(d) Outline five roles of farmer co-operative societies in agriculture
Explanation
(a)Definition of terms used in agricultural economics
(i) Assets: An assets is any item of value owned by a farm business which is expected to be used in generating future economic benefits for the farm. OR Assets are resources possessed by the farm enterprise which will enable the farm to undertake production
(ii)Liabilities A liability is a debt owed by a farm business to outside parties called creditors
(b)Problems encountered by farmers in obtaining agricultural credits
- Credit institutions are very few
- Centralised operations of most credit institutions
-Credit acquisition if influenced by political decisions
-Collaterals may not be available
-Inadequate record keeping by farmers
-Lack of moratorium or deferment of payment of loans for farmers
-High interest rate charged on loans
-Dishonesty on the part of credit granting agencies
-Poor reputation of some farmers/loan diversion by farmers
-Low level of education/illiteracy
-High risks and uncertainties in agriculture
-Small farm holdings/land tenure system
-In adequate information on sources of loans to farmers
-Administrative bottleneck/bureaucracy