Economic Study of Agricultural Finance and its Role in Agriculture development in Libya during the period (1980-2010) " Al-Marje Region as a Case Study"

Abstract

The agricultural financing process is an important element in helping to increase the level of agriculture, increase the production of agricultural commodities and meet the food needs of the population, as it has an effective impact on the social and economic development of farmers. Agricultural finance is also one of several factors that play a role in advancing complex agricultural production. As mentioned earlier studies of agricultural finance, there are problems in agricultural finance in Libya. Among these problems is the lack of agricultural funding and the absence of follow-up and supervision from the Agricultural Bank on the agricultural loans granted and how to exploit them in all agricultural activities, as well as the lack of funding policies of the Agricultural Bank to improve the efficiency of agricultural loans to achieve The objective of this study is to determine the role of agricultural finance in the development of agricultural GDP in Libya, as well as to identify the most important problems and obstacles facing the agricultural finance system in the area of the lawn in Mount Green, In addition to the identification of some concepts related to agricultural finance and the conditions of success of agricultural financing and sources of agricultural finance, the total value of agricultural loans granted (1.932) billion dinars and the total number of beneficiaries of agricultural loans 147950, and as the results of growth rates showed the time trend that the compound annual growth rate (9.4%). The compound annual growth rate of the total number of beneficiaries decreased by 3.1% during the 1980-2010 period. As for the compound annual growth rate of the total value of fixed value agricultural loans, the annual compound growth rate was 3.6%. During the study period, the total agricultural loans granted by the Agricultural Al-Marj Bank amounted to 10.695 million and the total number of beneficiaries was 902 beneficiaries during the period 1979-2006. The total value of agricultural loans amounted to (5.213) million, (49%). The results of the study showed that the gross domestic product (GDP) in current values increased by an average of about 7.5%, while agricultural GDP in constant values With a CAGR of (1.6%). The effect of the increase in agricultural GDP on GDP in current and constant values shows that there is a positive effect of agricultural GDP on GDP. As shown by the field study of beneficiaries of agricultural loans in Al-Marj area in Jabal Al-Akhdar, there are many problems, such problems, the difficulty of borrowing conditions, the required administrative procedures, the delay in granting loans and the low value granted by the Agricultural Bank, as well as the high prices of agricultural production costs, water shortage, Agricultural employment and the absence of the state in supporting farmers and the importation of locally produced agricultural products from outside, which causes weak financial revenues of farms. As for the results of the field study of the employees of the Agricultural Bank in Al-Marj area, among the obstacles facing them in the work and the absence of a unified system linking the branch with the General Administration of the Agricultural Bank, which causes the disruption of some administrative procedures and weak financial allocations granted to them from the public administration. Especially for new employees as well as the difficulty of collection of loans granted by the Agricultural Bank in Al-Marg and other problems. The study has reached a number of recommendations, the most important of which is the provision of financial allocations to the Agricultural Bank in Libya in general and the Marj area in particular so that it can meet the size of loans required for borrowers. It should be easy to obtain the loan and solve the obstacles and problems facing farmers in agricultural work. In the scarcity of water and the reduction of the costs of agricultural inputs and the problems of agricultural marketing, agricultural employment and other obstacles facing them, there should be follow-up and control of the Agricultural Bank on agricultural loans granted to farmers until the loan is used in its intended purpose.