University of Khartoum

The Evaluation Of Farmer’s Bank In Agricultural Finance The Case Of Potato Crop Financing In Khartoum State

The Evaluation Of Farmer’s Bank In Agricultural Finance The Case Of Potato Crop Financing In Khartoum State

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Title: The Evaluation Of Farmer’s Bank In Agricultural Finance The Case Of Potato Crop Financing In Khartoum State
Author: Abdelall, Amany Yassin Mohammed Ahamed Abdelall
Abstract: This study was conducted in season 1997/98 in Farmer’s Bank Shambat Branch, Khartoum State. It aimed to assess and evaluate the performance of the Farmer’s Bank as a specialized financial insituation in financing agricultural products and this was done by comparing potato farmers who were financed by Shambat Branch and those non-financed by the Bank. Also the study aimed to show the effect of loan on the size of cultivated area and production the cost of production,marginal revenue of financed farmer compared to non- financed farmer. Primary data were collected from a random sample for 60 potato farmers, 30 of whom of financed farmers were chosen and 30 of non - financed farmers. The data was supplemented by secondary data from other relevant sources. Descriptive statistical and budget analysis and regression analysis were carried to achieve the stated objectives. The study revealed that 70% of the farmers were educated and about 63% of the farmers were in the age group of 30-50 years old. Agriculture is the main source of income, representing about 58.3% of total farmers income. The bank profit margin was about 4% per month and the loan repayment period was not suitable to allow the potato farmer to repay their debts. The size of the loan was inadequate and was distributed in kind (e.g. seeds, fertilizer and sacks). The loans supervision and follow up were very poor. The study found that the financed farmers had cultivated more land than the non-financed farmers, while the financed farmers produced lower yields than the non- financed farmers, because the poor quality of seeds given to the financed farmers.The study also indicated that the cost of production of the financed farmers were higher than those of the non- financed farmers and the gross margin for financed farmers were lower than those of the non financed farmer. Also the seed cost was found to be the highest items followed by the irrigation and labours cost for financed farmers and non- financed farmers. The most important recommendation of the study to provide adequate credit for all agriculture operation, provision of extension services and allowing time for credit repayment.
Description: 200314 page
URI: http://khartoumspace.uofk.edu/handle/123456789/10354
Date: 2015-05-06


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