Essentials of Farm Financial Management

Contents Preface. I 1. Introduction. 2. Village level credit societies. 3. Central and state cooperative banks. 4. Land Mortgage Bank System. 5. Taccavi loans. 6. Private lending agencies. 7. Role of the Reserve Bank of India and the agricultural refinance corporation. II 8. Study of agricultural finance. 9. The role of credit. 10. Basic principles of credit management. 11. Repaying capacity second test of soundness of credit. 12. Risk bearing ability third test of soundness of credit. 13. Capital requirements. 14. Opportunities for investment in the farm permanent farm investments. 15. A caution in credit. 16. Use of balance sheet income statement and productivity coefficient in farm credit. 17. Linking of credit with marketing. Appendices. References and suggested additional readings. Index. From the Preface This book is divided into two parts. Part one is a brief description of the structure and operations of the major sources of agricultural credit in India. It is important to the student of farm credit to have an understanding of the role and functioning of the major agencies which are the sources of loanable funds to the cultivator. With this knowledge he will be better able to initiate research in this field and probe into the causes of malfunctions in the system. Agricultural extension worker will be better able to advise their farmer clients as to which source most nearly fits the needs and conditions for the different types of financing in their farm business. The second part of this book emphasizes the principles of farm financial management. Once capital is borrowed the farmer would need to be guided in its most profitable use and management. Although the examples used here are from Punjab the basic principles will be applicable to any farm situation regardless of its geographical location. 152 pp.…