The enhancement of agricultural productivity using agricultural loans as extension tool: A case study of district Swat [Pakistan]

An attempt has been made to highlight the importance of the extension workers and agricultural loans for the enhancement of agricultural productivity and the significance of agricultural loans for agricultural development in the contest of the spread of the new agricultural technologies. District Swat is economically a backward area in NWFP. Agricultural is the basis of this district's economy, but the mode of production is premature and the bulk of agricultural output is composed of low value crops like wheat; maize, rice etc. Fields are irrigated in plains areas by distributaries of river Swat and through springs and streams in the hilly areas. The new agricultural technologies which is at the heart of the transformation of the economy of some districts like Mardan, Peshawar, Charsadda etc, has not yet made any headway in this district because of poor role of extension agents and less resources. In this district culturable waste is increasing. The application of irrigation technology is relatively not wide spread in the district, despite the fact that the investment in new irrigation technology could be a profitable agricultural enterprise. Because of late introduction and slow diffusion of new agricultural technology and financials constraints the agricultural productivity remained very poor in this district. It is, also found that small and fragmented land holding and poor financial conditions of the majority of the farmers posed serious constraints to agriculture development. Majority of big farmers are beneficiaries of the financial packages advanced by government institutions, which constitute a relatively small proportion of the total farming population in district Swat. If the barriers against the smooth operation of district Swat economy if removed, than more of the small farmers could take advantage of the new agricultural technologies and this would even out the new sharply skewed pattern of income distribution in the district. However, majority of the people of this district are politically and economically aware and they try to take their due right in every field of life. The acute shortage of qualified extension workers, difficult access to credit facilities, smallness of size of land holdings, fragmentation of operational holdings, and lake of infrastructure have been some of the. major constraints on the effective diffusion of the new agricultural technologies in swat. These constraints. can be removed and the social profitability of the agricultural technologies investment can be enhanced through the implementation of carefully worked out programs for farm reorganization in district Swat. Moreover, extension staff buildup would help the farmers to overcome all the difficulties in the agricultural development of the district, by providing new information and guidelines for scientific farming techniques. Thus it is imperative for the government to develop extension staffs and their activities. It is proved from the present study that agricultural productivity can effectively be enhanced through extension workers and supply of agricultural loan from governmental institutes or other commercial banks. Participation of extension workers and agricultural productivity are positively correlated. More efficient the extension staff, timely and adequate supply of loan will increase the productivity. Briefly it is evident from the present research work that majority of the farmers were not aware of the extension activities. Where as, extension services play an important rule in the development of agricultural sector generally. Moreover, the rapid diffusion of the new agricultural technologies is also positively correlated with efficient extension services. The provision of timely and adequately supply of loan enable farmers particularly small to purchase necessary inputs in time for good yields. It is also found that extension services can play an important rule in creating awareness among the farmers about the agricultural loans.