The farming policy of the Government envisages considerable credit flow to boost agricultural efficiency and production. There are many advantages which could be availed by the growers that choose these loans for farming operations:
Utilising Agricultural Finance will help in financing growers to buy land. This, in turn, will help them to grow the activities of theirs, make existing marginal and small units economically viable, diversify the current activities of theirs and also bring fallow lands plus waste lands under cultivation.
Purchase farming equipment Banks offer farming term loans to farmers for short term loans and also investment purposes for production purposes. This particular loan enables the growers to buy the necessary gear for other instruments and agricultural purposes also.
Purchase livestock – The growers might make use of the money to buy livestock, which will help them generate alternative sources of income and lowers the dependency of theirs on farming activities only.
Cover storage/warehouse expenses – The majority of the farmers need a storage space where they are able to keep the harvest. The warehouse and cover storage cost is included in agriculture loan provided by the banking institutions. This provides the farmers a convenient and easy method to keep the harvest for future purchase.
Cover operating expenses The operating cost incurred is protected by the mortgage amount. This removes the concern of arranging cash for just about any extra operating expenses and also allows the farmer to concentrate on achieving a great harvest.