The effect of agricultural loans in farm productivity in Kosovo

Proceedings of the World Conference on Business, Management, and Economics

Year: 2023

DOI:

[PDF]

The effect of agricultural loans in farm productivity in Kosovo

Jehona Shkodra, Prespa Ymeri, Lindita Ibishi, Fjolla Gashi

 

 

ABSTRACT: 

The role of agricultural credit in increasing agricultural productivity has emerged as an issue of great importance in the context of food security and sustainable agricultural development. This scientific study examines the impact of agricultural credit on agricultural productivity in Kosovo. Through interviews with 500 farmers across Kosovo and empirical analysis, it explores the key mechanisms through which agricultural credit boosts yield growth, reduces vulnerabilities and increases agricultural productivity and promote long-term agricultural sustainability.

The study sheds light on the complex dynamics of capital injection, risk mitigation and technological progress enabled by agricultural credit systems. It also explores the relationship between credit distribution strategies, farmer education and the diffusion of innovations, and sheds light on the potential of credit programs to bring about transformative changes in agricultural practices. By looking at the impact of credit on resource allocation, from input procurement to post-harvest management this project clarifies the vital role of finance in optimizing agricultural value chains.  Ultimately, the findings of this study contribute to a more nuanced understanding of the symbiotic relationship between agricultural credit and agricultural productivity and highlight its indispensable role in achieving food security and promoting sustainable agriculture.
The lessons learned here provide policy makers, financial institutions and agricultural stakeholders with a framework to optimize credit mechanisms, foster innovation and harness the full potential of modern agriculture for the benefit of society and the environment.

keywords: development, environment, financial institutions, increasing, sustainable