Question

Explain any 3 situations in which credit helps in the development of agriculture

Answer 1

Explanation:

The basic role of credit in Agriculture is to provide capital to acquire any kind of productive assets, land and/or machinery. Credit provides the means for many farmers to adjust their operations to keep up with the constant changes and, by doing so, to improve their operations.

Answer 2

3 situations in which credit helps in the development of agriculture,

• Agriculture requires both labour and capital intensive techniques requires the purchase of machinery every year new machinery is developed which makes the previous one obsolete.
• New discoveries new types of chemicals and new techniques make the old ones obsolete. Farmers are not able to adjust to such fast-changing technology and new development will stop they have the risk of being backed out. So this is the first situation where the role of credit comes into effect.
• Today's agriculture is no more a traditional way of living it has become a business and financing such change is a situation where the credit will help in increasing the efficiency of production of existing individual farm business. By providing credit it shall also help the community as it will get more farm product and also popularity of rural areas