article · International Journal of Financial Research and Management Science
Access to agricultural financing plays a central role in driving poverty reduction and economic expansion across emerging economies. An analysis of data collected from farmer surveys and financing stakeholders between 2015 and 2024 shows that credit access directly boosts agricultural productivity. This financial support improves farm output, enhances food security, generates rural employment opportunities, and increases agricultural gross domestic product. At the household level, financial backing contributes to improved living standards and welfare, while simultaneously reinforcing wider macroeconomic development. However, significant structural obstacles remain. The full developmental potential of agricultural credit is constrained by high borrowing costs and ongoing institutional inefficiencies within lending systems. Addressing these barriers is vital to ensuring that rural farming communities can fully leverage financial resources for sustainable economic progress.
Securing finance is essential for farmers trying to grow enough food and build viable rural livelihoods. When credit systems function effectively, farming communities can produce more, create local jobs, and improve living conditions. Understanding the impact of high borrowing costs and institutional hurdles helps identify practical bottlenecks that prevent funding from translating into sustained economic growth and food security.
The findings highlight operational requirements for financial institutions, microfinance providers, and agricultural lenders seeking to design credit products for rural farmers. Addressing high borrowing costs and administrative inefficiencies could enable more effective lending programmes and financial services. Because the research evaluates established financial practices and existing rural lending frameworks, the insights apply directly to real-world policy reform and credit product restructuring rather than early-stage technical development.
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This study investigates how agricultural financing influences poverty reduction and economic growth in emerging economies from 2015 to 2024, focusing on agriculturally active regions. Using quantitative methods and data from farmer surveys and financing stakeholders, the research, guided by Agricultural Credit Theory, Harrod Domar Growth Theory, and Financial Intermediation Theory, examines links between credit access, productivity, and economic outcomes. Findings show that agricultural financing increases farm output, food security, rural employment, and agricultural GDP, although high borrowing costs and institutional inefficiencies limit the full impact. The study offers new empirical insights into how financing improves household welfare and supports broader macroeconomic growth.
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DOI: 10.70382/tijfrms.v12i7.069
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