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Subject and purpose of work: The aim of the work is to define the importance of banks in the development of agricultural holdings and the role they play in rural environment. Materials and methods: The relevant material was analysed on the basis of domestic literature concerning a range of banking products offered to natural and legal persons and by the inductivedeductive method. Results: The source of data used for conducting the analyses and drawing conclusions is the information obtained from the Cooperative Bank in Bielsk Podlaski. Conclusions: 1. The goal of cooperative banks is to provide the inhabitants of villages with access to banking services, including credits with attractive interest rates. 2. The services of a cooperative bank are most frequently used by farmers, craftsmen and teachers. 3. In Poland, cooperative banks operate on the basis of: the Foreign Exchange Act, the Payment Services Act, the Act on Freedom of Economic Activities, the Act on the National Bank of Poland, the Act on the National Guarantee Fund, the Law on Bankruptcy and the Rehabilitation Act, as well as on the resolutions of the Management Board of the National Bank of Poland.
The study focused on the profitability of pigeon pea production in Riyom LGA of Plateau State. Data for the study were obtained from both primary and secondary sources. Questionnaires were administered to 80 targeted farmers to get information on their socio-economic characteristics, years of experience in pigeon pea production and the reason for growing pigeon pea. The analytical tool used includes descriptive statistics to analyze the socio-economic characteristics of the farmers and farm budgeting technique (gross margin analysis) for assessing the profitability of pigeon pea production. The study also identified the constraints encountered by farmers such as high cost of labour, inadequate processing / storage facilities, problems of access to credit/loans and weed/pest infestation. The results shows that pigeon pea production is profitable with a total variable cost (TVC) at N22620.68 per ha, while gross revenue (GR) was N50185.25 per ha, the profit margin (GM) at N32564.59 and the net return per Naira invested was N0.69. It was recommended that farm inputs and improved seed varieties should be made available to farmers at affordable rates so as to enable them operate at a commercial and profitable level of pigeon pea production. These farmers should be encouraged to form a cooperative society so as to alleviate the problem of credit/ loan acquisition and procurement of genuine products as well as avoid exploitation.
The rules of agriculture crediting have been considerably changed since 1991, in comparison with the previous years. Agricultural credits became expensive and difficult to obtain. It was connected with a difficult situation of the national budget. In 1993 the budget deficit was equal to PLZ 43-9 bln and limited inflow of funds through banka to agriculture. The debts of agriculture, on a global scale, amounted in 1993 to PLZ 19.3 bln and, in relation to 1992, increased nominally by 10.8%. Short-term operating credits predominated in the debt structure of individual farms. Preferential credits, the funds from which were usually allocated for purchases of fertilizers or plant protection chemicals and sometimes of machinery, were the most common among them. Investment credits constituted 1/4 of the total credit number. Limitation of investment expenditures by farmers was connected with a deficit in their own funds and related to that fact difficulties in obtaining of a credit.
The research concerned the credit activity of co-operative banks in the years 1930-1993, in the Włocławek province. The credit position of individual farms was analysed versus that of other borrowers. The obtained results indicate that the number of short-term credits was systematically growing throughout the examined period, with a simultaneous depreciation of money amount corresponding to an application for a credit submitted by a farmer. Moreover, there appeared a regular tendency of departing from investment credits. Payments on this kind of credit dropped by 22%. A new phenomenon came into being, namely granting certain bank funds in the form of operating credits for investment purposes. The research result« also show that only about 25% of farmers decided on credits. Commercial credits used in agricultural production did not influence farm incomes, due to the fact that agricultural production profitability remained on a low level.
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