Micro Finance Effects on Agriculture Production in Rural Area of the World

Abstract

Microfinance is the small amount that is given by formal institutions to farmers for agriculture production in the rural world. This amount is less than one lac rupees. It plays a great role in the development of agriculture. Seeing its importance the present study was carried out since August 2023. The major objective was to review the past research of the world to what extent rural finance has affected the production of agriculture and food security of the world. A total of 29 articles were downloaded from the net and read again and again and analyzed the situation. The study review literature indicated that rural finance has a great role in the development of a country. The review further explained that finance purchases inputs for agriculture activities which push agriculture production and protect food security for the future. Day by day the population of the world is going upward while their demand for food is increasing. The total population of the world will be 9 billion by 2050 and food availability will be a great challenge to the world community. They discussed that on an annual basis, $80 billion investment in the agriculture sector is required for controlling food security in the future till 2050. Different organizations have discussed the food problem on the world forum, and how to handle this problem to fulfill the food demands of the world in the future, to protect the world's food security in 2050. Among these organizations, FAO, GIZ, IFAD, etc. have worked at the world level on how to protect food security. Capacity Building is also the organization that helps at the world level in building the Agriculture sector. So, those organizations' major objective is that how to solve the problems of the rural world. All articles disclosed that rural finance plays a great role in the development of agriculture and food security in the world. On the basis of problems, the study recommends that to provide more loans to the rural world to enhance agriculture production to protect food security till 2050.

Keywords: Microfinance, Effects, Agriculture Production, World

JEL Classification: https://ssrn.com/abstract=4565289