Problem
Inadequate agricultural capital
Other Names:
Low investment in farmsLack of agricultural capital
Insufficient land funds
Unavailability of farming capital
Limited availability of farm loans
Unfinanceable new farms
Inadequate agricultural funding base
Incidence:
[Developing countries] Agricultural diversification would involve purchasing more machinery, hiring more labour and increasing the amount of both labour and capital needed to manage a more complex operation. Without creating a financial reserve, there can be no loan structure, credit union or bank. In many small communities, despite an intensive drive for capital resources, the low income generated by most family production units means that they are unable to generate new capital, and they struggle to purchase supplies and to market products on their own. Subsistence-level income and lack of community capital prohibits investment, since an immediate return on investment cannot be assured and the tax base of land owners is often too low to support the building of necessary facilities or provide local fire, police and ambulance services. The limited availability of resources leads people to clear the land with only what is at hand, and market only the crops one person can carry into the village to sell.
Broader Problems:
Lack of fundingDisincentives against farmingInsufficient financial resourcesLimitations on capital development in rural areas Narrower Problems:
Insufficient loan collateral Aggravates:
Poor quality of domestic livestockProhibitive cost of farm equipmentDeclining agricultural landProhibitive agricultural diversification costs Strategies:
Providing agricultural aid to developing countriesIncreasing amount of cultivable landLimiting availability of farming capitalEnsuring availability of land for low-income groupsImproving agricultural capitalImproving agricultural capitalProviding sufficient agricultural capitalAbstaining from agricultural investmentRaising investment in farmsLowering investment in farms Subject(s):
Agriculture, Fisheries → AgricultureAgriculture, Fisheries → Farming
Commerce → Credit
Commerce → Finance
Commerce → Investment
Geography → Land type/use
Societal Problems → Inadequacy
Societal Problems → Scarcity
Related UN Sustainable Development Goals:
Problem Type:
D: Detailed problems Date of last update
04.10.2020 – 22:48 CEST