AGRICULTURAL FINANCING IN NEPAL: EVIDENCE FROM FARMERS IN KANCHANPUR

Abstract

This study examines the status of agricultural financing in Nepal. The objective is to identify and analyze the effect of agricultural financing and its effect in earning and employment generation of farmers' in Kanchanpur District. Descriptive research design is used to analyze and evaluate the data collected from different Municipalities and VDCs. Sample of 398 farmers' is taken to conduct this thesis. Data collection is conducted using multiple choice as well as short questionnaires. The data was analyzed using Microsoft Excel and IBM SPSS, employing statistical tools such as descriptive statistics, and Inferential statistics. The research framework established relationship between the dependent variables and Independent variables. The results indicate that there is a significant positive impact of Agricultural financing in employment generation and earning of the farmers' in Kanchanpur District. High interest rates in agriculture loan and lack of proper managed market make farmers' loose their confidence to take loan. It is recommended that the policy makers and government should focus on providing proper managed market to farmers' as well the interest rates charged on agricultural loan should be reduced. Farmer's should be taught about the importance and impact of taking agricultural loan to grow their productivity which could lead to good earning and generation of employment.