The current situation of agricultural financing and its impact on animal production in Qena Governorate

Document Type : Research and Review Papers

Authors

1 Agricultural Economics’ Department Faculty of Agriculture Sohag University Sohag 82524 Egypt

2 Department of Agriculture Economics , Faculty of Agriculture , Sohag University , Sohag , Egypt

Abstract

An advancement of the financing process for agricultural sector in general and the field of animal production in particular) is increasingly important day after day as it is one of the main production factors that It leads to a definite increase in production, thus increasing national agricultural income, improving per capita income, and raising the standard of living of the agricultural population. The study aims to study the current and future status of the role and volume of agricultural financing in the field of livestock production, the development of the volume of agricultural (animal) loans and its impact on agricultural development in Qena Governorate. It has been shown through the results of the research, and it has been shown through the study and the results of the development of agricultural loans (in the field of livestock production) granted by the Agricultural Development and Credit Bank in Qena Governorate, that there is an annual increase in these values estimated at about 24,706.81 thousand pounds, equivalent to about 16.20% of the average total. Loans granted at the Deshna Center. While it was found that there was an annual decrease in these values, estimated at about 3032.39, 4496.61, 615.83, and 2301.39 thousand pounds in the centers of (Abousht, Nag Hammadi, Qift, and Qus), respectively, equivalent to about 5.64, 7.81, 2.38, and 4.99% of the average total of loans granted in these centers. Respectively. By calculating the “Spearman ranks and grades” coefficient between the rankings of the different centers under study according to the total loans granted by the Agricultural Bank of Egypt to livestock production farmers in Qena Governorate centers during the two periods (2005/2007-2018/2020), it was found that it was estimated at about 0.813, which indicates that the changes occurring in The total loans granted for animal production in most of the governorate’s centers during the second period were not of the same relative importance as their counterparts during the first period under study, and that there was a significant impact on the rankings of the centers according to the value of the loans granted under study, which shows the reluctance of some to expand in the field of animal production. . From the results of the comparative analysis between the relative importance of the total loans for animal production in the centers of Qena Governorate, it was found that the order of the centers according to the relative importance of the total loans granted for animal production was as follows: Dishna Center is in first place, followed by Naqada Center, then Al-Waqf, then Qena, then Nag Hammadi. In order, then (Aboucht, Qus, and Farshout) are equally important in last place.

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