The Effect of Agricultural Loan to the Local Farmers

Agricultural loan plays an important role in agricultural development. According to Department of Agriculture (2010) agricultural credit is considered as one of the strategic resources for pushing the crop production to high horizons consequently raising the living standards of the rural poor farming community. Determining the problems and the credit needs of small farmers are important consideration in designing appropriate credit systems (Glover Kusterer 2016). Credit is needed in every type of business and agriculture is no exception. The need for agriculture credit becomes more important when it moves from traditional agriculture to modern agriculture.