Study of Farm Production through Agricultural Loan at Shikalbaha Union of Karnafuli Upazilla, Chattogram

Abstract

Agriculture is essential for supporting economies, ensuring food security, and fostering prosperity, particularly in nations like Bangladesh. Agricultural loans or credit are crucial for empowering farmers and raising production due to the size of the rural workforce and the GDP contribution they make. This study looks into the connection between farm output in Shikalbaha union of Karnafuli, Chattogram and agricultural credit. It looks at how financial support affects productivity, technology uptake, and yield growth. The study assesses the efficiency of credit systems in enhancing agriculture, rural communities, and productivity. The results might influence regulations, enhance lending procedures, and support sustainable agriculture. Financial impact emerges, contributing to the field's advancement. The study conducted in the Karnafuli upazilla, close to the researcher's hometown, shows a balanced farmer experience with different family sizes and sources of income. With a move toward hygienic methods and trained labor, the majority of farmers rely on milk as a source of revenue. For the purchase of equipment or feed, short-term loans are typically obtained from BRAC Bank. While smaller farms prioritize cost-effective solutions, larger farms need significant loans for infrastructure and modern technologies. While Type B farms have a higher emphasis on value-added methods and milk quality, Type A farms receive larger loans and make more money from milk sales. The report offers guidance for agricultural policy, lending, and sustainable development.