AGRICULTURAL FINANCE.pdf

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CONTENTS PAGE
Module 1………………………………………………………. 1
Unit 1 Meaning and Scope of Agricultural Finance…… 1
Unit 2 Classification of Credit…………………………. 7
Unit 3 Importance of Credit to the Farmer…………….. 18
Unit 4 The Role of Credit in Agricultural Development 21
Unit 5 Farm Records Keeping for Financial Decision

Making…………………………………………… 25
Unit 6 Farm Accounts for Financial Management.. .. 33
Module 2…………………………………………………………. 38
Unit 1 Input-Output Relationships (Law of Diminishing
Returns)……………………………………………. 38
Unit 2 Input- Input Relationships………………………… 51
Unit 3 Product-Product Relationships…………………… 57
Unit 4 Principle of Equip-Marginal Returns and………… 66
Unit 5 Law of Comparative Advantage…………………… 73
Unit 6 Cost Functions……………………………………… 78
Module 3…………………………………………………………. 88
Unit 1 Internal Methods of Acquiring Capital…………… 88
Unit 2 External Methods of Acquiring Capital…………… 95
Unit 3 Internal and External Sources Capital……………. 111
Unit 4 Agricultural Credit Banks………………………… 120
Module 4…………………………………………………………. 126
Unit 1 Concept of Interest Rates………………………….. 126
Unit 2 Analysis of Interest Rates on Loans………………. 135
Unit 3 Three R‟s and Five C‟s f Credit…………………… 145
Unit 4 Seven Ps‟ of Credit………………………………… 156
Unit 5 Acquisition of Capital and Attendant Risks………. 163
Unit 6 Planning and Budgeting……………………………. 176
Unit 7 Net worth Statement………………………………… 182
Unit 8 Income Statement…………………………………… 190

Unit 9 Cash Flow……………………………………… 197
Unit 10 Compounding and Discounting……………….. 207
Unit 11 Capital Budgeting……………………………… 215
Module 5……………………………………………………… 224
Unit 1 Types Of Risks And Strategies To Reduce Risk 224
Unit 2 Problems Encountered by Government Financial
Institutions……………………………………… 231
Unit 3 Agricultural Loan Delinquency and Diversion in
Nigeria…………………………………………… 240

Unit 4 Subsidising Agricultural Credit and Inputs in

Nigeria…………………………………………… 250