With today’s advance and changing world, new technologies have emerged in the agricultural sector. It’s needed and important to increase the production in farming. Every farmer wants to avail of this new technology however not all can afford an upgrade. Farmers specially in developing countries cannot afford to have this technology. They do not have the capital and money to purchase the newest equipment and tools. Because of this they opt to stick with the traditional way of farming because there is nothing they can do.
Farmers need money or capital to increase one’s production. Farmers need to adapt and embrace the newest technology that can help them in their farming needs. This in return will yield better harvest and production. But not all farmers have the capital and money to spend for this. This is where they seek farm financing. Farm Finance has become vital to these farmers because it can help them gain the needed money for financing various farm resources. Aside from banks credit agencies are also available in some rural areas. They can assist farmers with their capital needs by providing credit to farmers. However, the credit policies, credit rationing, interest rates and other factors can have a significant bearing on farm returns.