A CRITICAL EVALUATION OF MICRO CREDIT UTILIZED BY SMALL FARMING COMMUNITY: A CASE STUDY OF MANDI BAHA-UD-DIN

Abstract

Credit is an important tool for the farming community to get command over the use of
working capital, fixed capital and consumption goods. With the dawn of green revolution, there
were rapid changes in crop production technology, so credit requirements have increased for
Agriculture crop production. In Pakistan, agriculture is characterized as having large number of
small and marginal farms with limited financial resources. To overcome this issue various
financial institutions are working in the country to fulfill the needs of farmers for better
agriculture productivity. This study is purposed to ascertain the impact of credit on agriculture
production, linking agriculture production function as a dependent variable with the explanatory
variables like agriculture credit, seed, water, labor force and other inputs like fertilizers and
pesticides. By employing Cob Doughlas production function; we can filter out the real time role
of agricultural credit in changing the crop production. Times series data at District level would
be used to pursue the specific objectives. The study would generate helpful policy input.