Agriculture Credit and its Impact on Farm Income

Agriculture credit enhances the mechanization/modernization in the agriculture that implies the use of various power sources and improved farm tools and equipment. Mechanization enhances the cropping intensity, precision and efficiency of utilization of various crop inputs and reduces the losses at different stages of crop production. The objective of farm credit is to enhance the overall productivity and production together with irrigation, biological and chemical inputs of high yielding seed varieties, fertilizers, pesticides and mechanical energy which gives contribution in enhancement in the farm income. Presently, the lending policy of the formal sector has mainly focused on irrigation, purchase of farm equipments etc. which positively enhanced income, employment and assets generation.