If you are into agriculture and have farm land as well as livestock then there is a high probability that at some point in time you might need an agricultural loan. There are several different types of agricultural loans available including specific loans for farm land, live stock, and any other agriculture related requirement. But the question is how to obtain agricultural loans?If you require agricultural loans then there are certain aspects to consider before you can obtain the loan. The different aspects include:Business Plan: As an existing farmer or a new farmer applying for agricultural loans, the first step is to prepare a detailed business plan that will throw light on the cash flow forecasts for the near future. The projection of the cash flow in your business plan will help your lender to understand how much loan you require and how much you are capable of paying back. You can pick up a copy of Business Plans for Agricultural Producers from the Texas Cooperative Extension Service for $1.25 and read through it to understand how to make a well-projected and detailed business plan for the loans.Compare terms: There are several financial institutions that offer agricultural loans and each institution has its own rates and minimum loan amount. Before you apply for agricultural loans it is always a good idea to compare the various aspects of the loan like lending terms, minimum amount, scheduled payment period, marginal payment options and much more. You can compare the above information offered by banks, financial institutions, and Farm Credit Associations over the internet.State Agricultural Finance programs: Most US states offer several state agricultural finance programs while some of the states offer at least one loan program. State agricultural finance or loan programs include everything from farmer loans to short-term farm land loans, disaster recovery loans, livestock loans, agri-business loans, equipment loans, seasonal loans, and much more. One of the popular state agricultural finance programs is the Aggie Bond Beginning Farmer Loan Program. This program is currently available in 17 states and helps new farmers to obtain loans at reduced rates for livestock, buying land, etc. You can find details on agricultural loans and state agricultural finance programs at the National Council of State Agricultural Finance Programs.Commercial lenders: You can check the various offerings by commercial lenders like banks and financial institutions as well. There are several commercial lenders who specialize in different types of agricultural loans. There are approximately 2,500 farm banks all across US that offer agricultural loans at good interest rates. You can also check out with banks because they offer more farm loans than any Farm Credit System in the US.U.S. Department of Agriculture (USDA) or Federal Government: Several types of agricultural loans are offered by USDA or the Federal government. You can pay them a visit if you are unable to get commercial credit or if you are unable to get the loan amount that you require for a specific agricultural requirement. There are several loan and farm land finance programs offered by the USDA Farm Service Agency.
Due to a great climate and global positioning, Nigeria is one of most fortunate nations when it comes to agriculture. In this way, the Nigerians have plenty of agricultural resources to explore and even to export. By effectively managing the available agricultural resources, Nigeria is also able to improve its economic status by exporting.Agricultural implications in Nigerian economic development
Whether we are thinking of the coastal mangrove, northern savannas, woodland savannas or rain forests – Nigeria has it all. Besides the petroleum industry, the agriculture industry is also an important resource for economic development and increase of GDP level. Having this in mind, during the last 20 years more than 40% of the GDP level was derived from the agricultural sector.In the same time, agriculture is an important factor in Nigeria since it contributes to the rate of employment and creates new and reliable employment opportunities. Currently, more than 60% of labor force is concentrated in the agricultural sector. Similarly, farming is a very resourceful activity in Nigeria and only 33% of nation’s land is under cultivation. In this way, the agricultural sector will also be one of the main fields of activity in the future.Furthermore, the government also favors the development of cooperative societies with the purpose of encouraging the industrial agriculture because in Nigeria due to a diverse climate, it is possible the production of almost all agricultural products in the semi-tropical climate.Agricultural sectors in Nigeria
Before the 1960’s, agriculture was the main activity in Nigeria. However, once with the development of the oil exporting industry it became necessary the import of food. In order to maximize the agricultural outcomes, other agricultural areas were developed during the last decade.In this way, the main agricultural sectors in Nigeria are the following:- Food Crops
The crop production was the main agricultural activity in Nigeria for a long time and currently comprises of beans, rice, palm oil, yams, cocoa, groundnuts, melon and many other food crops that are favored due to the tropical and semi-tropical climate of this nation.- Cash Crops
In this agricultural sector we may include the production of cotton, rubber, kolanut, gum Arabic, beniseed, palm kernels and many other such crops that can grow in this tropical climate.- Forests
In the case of forests, the following forest tees are available in Nigeria: abora, teak, ebony, ekki, black afara, camwood, mahogany, Nigerian walnut. This agricultural sector is an important and resourceful one in Nigeria and it contributes to economic development in the area.- Livestock
Starting with the 1970’s, a total of 11 million cattle existed and since then on the Nigerian nation has successfully enlarged its livestock production out if which 90% was found in the northern states of the nation. Nowadays, almost all rural households raise their own poultry while chickens represent the predominant poultry in the area. Apart from chickens, in Nigeria there are other animals reared such as cattle, duck, pigs, turkey, sheep, goat, pigeon, donkey and guinea fowls.- Fisheries
This agricultural sector is an important one for Nigeria and ever since the 1970’s when the domestic production of fisheries has been reaching the level of 700.000 tones on a yearly basis. Currently, the fisheries produced within the borders of Nigeria include crabs, shrimps, spade, shark, grunters, cat fish, thread fin, shiny nose and many more.To conclude, the Nigerian agriculture offers many opportunities to reach economic development on the long run and represents one of the main activities when it comes to export, as well as the petroleum industry. Nevertheless, Nigeria is applying the appropriate solutions in the case of agricultural resource and this gives this nation a competitive advantage as compared to other emerging markets.Also visit Naija Face at Naijaforum.net.