IMPACT OF AGRICULTURAL CREDIT ON PRODUCTION AND THE PROBLEMS FACED BY THE BENEFICIARIES' GROUP

Abstract This study investigates the impact of agricultural credit on production and the problems encountered by beneficiary farmers. Agricultural credit plays a crucial role in enabling farmers to invest in essential inputs, adopt modern technologies, and improve their overall agricultural practices, theoretically leading to enhanced production, income, employment, and asset accumulation. 1 However, access to and effective utilization of agricultural credit can be hindered by various challenges faced by farmers. 2 This research aims to analyze the extent to which agricultural credit influences key socioeconomic indicators among beneficiary farmers and to identify the specific obstacles they face in obtaining and utilizing these financial resources. Understanding these impacts and challenges is vital for formulating effective policies and interventions to improve the agricultural credit delivery system and maximize its benefits for the farming community. The findings of this study will provide valuable insights for policymakers, financial institutions, and agricultural stakeholders in designing targeted strategies to enhance agricultural productivity and the livelihoods of farmers.