الفهرس 
الباب الثانىيوجد فقط 14 صفحة متاحة للعرض العام
 |  | from | 238 |  |  |
| | | from | 238 | | |
المستخلص
of the Study
Loans and grants are deemed as very important resources for financing in the third
world. These resources are used to fill the financing gap in all sectors generally and in
agricultural sector particularly. They help in the development of this sector and give a
momentum to the overall development in such a quick and accurate way. This leads to
increasing the productivity by using technology and modern approaches, on which lies
the big burden for the necessary needs of people to face the increasing population.
Grants are used for the development of farmers of small possession. They are helped
utilize modem technology and ways of extension to produce varieties of crops that help
in inc~easing the productivity and hence raising standard levels of living which finally
will lead to the welfare of rural dwellers particularly and the whole community
generally.
The study aims at recognizing effect of the Agricultural Production and Credit Project
(APCP) on the equity of the Principal Bank for Development and Agricultural Credit
(PBDAC), on the agricultural production inputs, and effect of the techniques added by
APCP on the dcredit and human resources development at the Agricultural
Development Banks (BDACs). It also studies the effect of credit offered by APCP on
the productivity and profitability of projects financed through PBDAC and Kalubia
Bank for Development and Agricultural Credit.
The study includes five volumes based on data collected from primary sources through a
field survey. Principals of qualitative and quantitative statistics were employed in
performing this study on the projects financed through PBDAC and its affiliates in
governorates.
Definition of the Problem
Farming in Egypt is distinguished by agricultural small possessions owned to most of
farmers with tiny individual incomes. This has led to an increase for financial needs
necessary for the continuation of productive operations in the shadow of the constrains
facing the agricultural production such as pricing. marketing and producing risks. The
need to sustainable financial resources with a cost adequate to farmer’s income is
emphasized.
The Principal Bank for Development and Agricultural Credit is one of the most
important financial resources as a general and the fonnal resource as a particular. It is
the governmental tool for implementingthe agricultural policies and making economical
development aiming at raising the agricultural production efficiencyand farming income
levels. As the PBDAC financial capability is not enough to match the continuous
increasing demand on the agricultural credit, and as a support from the government to
maintain this capability,the grant of the USAID through the APCP has emerged as one
of the most important external financial resources to the Bank. This grant was
estimated at US$ 215 millions. It aimed at developing the Bank operations to be a
strong financialinstitution. The project has developed a system for transferring modem
technology, providing credit for small farmers and rural dwellers who are benefited from
the Bank services, and hence, fulfillingthe whole economic development.
Volume two of this study discussed the main aspects of agricultural credit in some
developed and developing countries. The goal behind that was to recognize the
advantages of the financing systems in these countries in the way that help in evaluating
the agricultural financing system in Egypt.
In USA, credit is based on three types of banks. The first, land banks with a number of
12 banks, the second, federal banks with a number of 426 banks, and the third,
cooperative banks with a number of 12 banks in the same location of the other two
types. In Denmark, starting from the year of 1850, the agricultural credit was touched
on as one of the factors that helped the agricultural development.
In India, financing policy of the agricultural sector aims at offering adequate support
for increasing the productivity qualitativelyand quantitatively. This policy is performed
by rural cooperatives, commercial banks, and regional and rural banks. In Indonesia,
the General Bank: is the main resource for agricultural credit and depends on the
governmental financing and deposits. This bank has 113branches in the big cities and
related villagebanks. The government of Indonesia supports the village banks by some
credit programs.. BIMAS, an example of such programs, is specialized in offering loans
to small farmers who possess small cultivated areas. The bank gives loans to farmers
with 80% of collateral value at an interest rate of 12.5% and a fine of 3% for delay
recovery. In Thailand, the government offers credit through the PrincipalBank for
Agricultural Credit and its affiliates. Beneficiaries are divided into three categories.
Villagers are given short and medium. loans with a ceiling of 5 millionbahts for an
interest rate of 12.5%. Cooperatives are given loans with a ceiling of 5 millionbahts to
be repaid within 5 years. and the loan amounts 80% of the value of pawned crops
Fanners are given loans the same as the other two categories with interest rate of9.5%
to be repaid within 5 years. In Jordan, agricultural credit is a new system as there were
not any specialized institutions for that purpose before 1952, except for individuals,
merchants and usurers. Important agricultural credit institutions are: (1) Jordan
cooperative organization, and (2) agricuIturallending institution. Collateral is unified as
the amount of a loan is 100% of the value of security in case of offering registered lands
and what is pawned for the institution. The loan amount is reduced to be 75% of the
value of security in case of equipment and machinery.
Volume three of this study discussed the effects of the Agricultural Production and
Credit Project ( APCP ) on the consolidated balance sheet of the Principal Bank for
Development and Agricultural Credit ( PBDAC ) in four chapters. Chapter one is about
the total assets of the consolidated balance sheet. The most important asset is short
term loans because of its relative importance which reached 17.1% of total assets in
1983/1984 and increased to be 400,/0in 1994/1995 with increase ratio of 1300%
compared to the principal year. Medium and long term loans increased in the amounts.
but decreased in the relative importance from about 44.9 % in 1983/1984 to about 32.6
% of the total assets in 1994/1995 with increase ratio of 405 % compared to the
principal year 83/84. Miscellaneous debit balances developed from L.E. 267.1 million
in 1983/1984 to L.E. 1463.5 million in 1994/1995. The monitory value of inventory
increased from L.E. 144.2 millionin 83/84 to L.E. 211.3 millionin 93/94.
Chapter two of Volume three discussed an analytical study on the total liabilitiesof the
consolidated balance sheet ofPBDAC. The study focused on analyticalpresentation for
current accounts and savings. The relative importance of this component increased
from 21.7 % of total liabilitiesto 23.2 % in 1994/1995. Chapter two focused also on
deposit accounts as the balance was about L.E. 195.6 millionin 83/84 with relative
importance of 14.4% and became about L.E. 1704.5 million in 94/95 with relative
importance of21.8 % of the total liabilitieswith increase ratio of871% compared to the
principal year. The chapter studied the overdraft account which is considered as an old
source for financing the bank activities since its existence. The overdraft balance
reached about L.E. 234 million in 83/84 with relative importance of 17.02% of total
liabilities. This balance reached its peak in 1990/1991; about L.E. 1962 millionwith
relative importance of 26.3% of total liabilities. As a result of the high cost ofthis
component, the bank started to reduce its dependent on this resource which led to a
decrease in its balance to reach about L.B. 372.9 million in 94/95 with relative
importance of 4.8 % of total liabilities. The chapter showed an analysisfor credit
facilities, the surplus due to Ministry of Finance, local loans, foreign loans, and grants.
The study referred also to the provisions item which represented 3.6 %of relative
importance in 1983/1984; and reached its peak of6.8 % in 1993/1994.
In this chapter, also, an analytical presentation was showed for components of the
equity. The first component, the capital, balanced about L.E. 50.7 millionin 1983/1984
representing 3.7 %. The balance developed to reach L.B. 289.2 millionrepresenting
again 3.7 % in 1994/1995 followed a decrease in this ratio in previous years. This
increase in the capital was due to a support to the bank capital.
Capital reserve had a decrease in its relative importance from 3.5 % of total liabilitiesin
1983/1984 to 3 % in 1994/1995. The study showed the more important liabilityitem as
a without cost resource of funds, the foreign grants. The relative importance of this
resource for the SmallFarmer Project increased from 0.4 %in 1987/1988 to 1.3% of
total liabilities in 1994/1995 with an increase ratio of595 % compared to 1987/1988.
The relative importance of Agricultural Production and Credit Project was 1.7% of
total liabilities in 1987/1988 and gradually increased to be 10% ofthe total relative
importance for total liabilities. This indicated how APCP effected the liabilityside in the
balance sheet ofPBDAC.
Chapter three of Volume three discussed the effects of the Agricultural Production and
Credit Project on the equity of the Principal Bank for Development and Agricultural
Credit. The balance of the capital was about L.E. 50.7 millionwith relative importance
of 51.3 % of total equity. This balance increased to be L.E. 289.2 millionwith relative
importance of 20.3 in 1994/1995. This decline was due to the addition of APCP’s
grant to the equity. The effect of this grant on the capital reserve showed a decrease in
the relative importance of the capital from 60 % of total equity in 1986/1987 to 16.6%
oftotal equity in 1994/1995.
The study showed that the APCP’s grant had no effect on the SmallFarmer Project’s
grant as a component of equity. Disbursement from SFP’s grant started with an amount
of L.E. 17.6 million representing a relative importance of 6.8 % of total equity in
1987/1988, then the disbursement reached L.E. 104.8 millionrepresenting a relative
importance of 7.4 % of total equity. The increase ratio was 595% compared to the
principal year 1987/1988. This grant participated in the decline of the relative
importance of capital and total equity. The reason of APCP’s grant not effecting on
SFP’s grant was because disbursement from the later started at the sametime of the
start disbursing from APCP’s and the balance was increasing year by year.
However, the study showed that the APCP’s grant had an effect on the equity
Disbursement from this grant amounted about L.E. 72.2 million representing a relative
importance of 27.8 % of total equity in 1987/1988, then the disbursement gradually
reached L.E. 792.4 millionrepresenting a relative importance of55.7 % of total equity
in 1994/1995. The increase ratio was about 1098%compared to the principal year.
The importance of APCP’s grant came from its participation in increasing the value of
internal resources of funds for PBDAC along with increasing the relative importance of
these resources and supporting the Bank capital to enable it to face the various activities
in the short, medium, and long tenus.
The effects of APCP on PBDAC’s role of inputs distribution appeared from shrinking
that role which led to a gradual decline in distributed quantities of fertilizers during the
study period. Fertilizers reached the minimumquantities distributed to be about 600
tons in 1994/1995, meanwhile,revenue from fertilizers decreased to the minimumto be
L.E. 126.1 millionrepresenting a relative importance of2.6 % in 1994/1995. The study
showed that distribution of untraditional fertilizers declined sharply to be 300 tons
representing a relative importance of 0.3 % of total quantities distributed, in 1994/1995,
meanwhile, revenue from untraditional fertilizers amounted L.E. 0.2 million
representing a relative importance of 1.2%of total quantities distributed in the same
year.
The quantities distributed from traditional pesticides declined to reach the minimumin
1995/1996, where the relative importance was 1.3 % of total quantities distributed.
Meanwhile, the value of quantities distributed amounted L.B. 182.6 millionrepresenting
a relative importance 12.8 % of traditional pesticides distributed. Untraditional
pesticides reached the minimumof quantities distributed to be 900 tons representing a
relative importance 3.6 % of total quantities distributed, meanwhile, the value of
quantities distributed amounted L.R 8 millionrepresenting a relative importance 10.7%
of untraditional pesticides distributed.
c
The study discussed the quantities and values of seeds distributed for wheat, rice,
soybeans,brown beans, peanuts, barley, and cotton.
Chapter four of Volume three handled an analysis for APCP’s activities. These
activities were divided into two divisions;first of which was short term activitieswhich
included agricultural-related works, and the other was crops production. Number of
loans disbursed for the first activity was 19,800 loans for men, and 772 loans for
women, while total amount of these loans reached L.E. 12.2 millionin 198711988. The
amount of these loans reached L.E. 128.2 million representing a relative importance of
41 % of total amount of disbursed loans in 1992/1993. Loan recovery declined to reach
L.E. 57.9 million representing a relative importance 31.5 % of total amount due in
1993/1994, while repayment reached L.E. 54.4 million representing a relative
importance 31.3 % of total amount repaid in the same year. Amount ofloans disbursed
for the second activity, crop production, was L.B. 253 million in 198911990 and
increased to be L.E. 499.7 millionin 1993/1994 with a relative importance of25 % of
total amount of disbursed loans for this activity in the same year.
Findings of this chapter showed that the amount of disbursed loans for crop production
activity was the highest of all amounts disbursed for short term activities or medium
term ones including horticulture, digging wells, land improvement, grading land by
laser, and agricultural related works.. This indicated the importance of the availability
of funds to produce crops.
Volume four discussed the sample design, sampling, and the questionnaire. The
systematic random sample procedure was applied. Two administration centers in
Kalubia; Kaliob and El Kanater EI Khayria branches, were selected.
Volume five handled the crop arbitration for crops produced in Kaliob and EI Kanater
EI Khayria branches. There were tomatoes, wheat, cotton, and strawberry in Kanater,
and tomatoes, wheat, green pepper, egg plants, and onions in Kaliob, The more
important findings of this volume were that the highest net profit was achieved from
strawberry as its net profit amounted about L.E. 6624.5 through the APCP, while it
reached about L.E. 2898.5 outside the project. This indicated the effects of APCP on
increasing the productivity and the net profit for the crops financed through it.Volume six discussed the economic effects of APCP on the producers in Kalubia
governorate. Chapter one of this volume presented the services offered by the project.
In Kaliob, these services included:
1. Financing on the appropriate time.
2. Outreach of equipment and machinery.
3. Making loans available for purchasing required agricultural inputs from cooperatives
and private sector.
4. Making loans available for poultry.
5. Providing cash loans required for planting operations.
6. Providing technical and agricultural extension for different crops.
7. Providing cash loans required for crop marketing.
The services offered at the village bank level in Kanater branch included:
1. Planting loans used for producing traditional and untraditional crops.
2. Loans for purchasing poultry; some of which for purchasing young chicken.
3. Loans for egg production.
4. Loans for chicken meat production.
5. Financing necessary for credit service improvement for production operations.
6. Providing technical recommendations and agricultural extension for clients
participating in the project.
7. Offering planting and investment loans.
The study also highlighted on agricultural collections at Kaliob and Kanater branches
level. Utilization of these collections was:
1. Cost reduction for producing crops in these collections.
2. Pest and disease control which led to production increasing.
3. Reducing loss during harvest by cultivating big areas to minimize the production
loss, reduce costs, and increase production.
The study discussed also the qualitative distribution of agricultural machinery in the
sample. The more spreading machinery were plows, soil preparatory, hoes, irrigation
pumps, sprayer engines, back sprayers, and trucks.
The study showed that projects financed by APCP benefited the village by:
1. Increasing productivity.
3. Raising standard of living.
2. Increasing proceeds.
4. Using new techniques in agriculture.
5. Increasing employment and reducing unemployment among rural dwellers.
The study touched on crop rotation and non-mandatory crop delivery. Benefits of this
included:
1. Getting high prices for different agricultural products.
2. Competition and non-monopoly.
3. Availability of cash.
4. Increasing quantities supplied to market.
5. Improving inventory quality.
The study showed the positive sides achieved through the project as:
1. Arbitrating each crop to go along with real cost.
2. Increasing productivity offeddan as a unit.
3. Taking into consideration experience, personality, ability to repayment of the client
before getting loans.
4. Raising the credit ceiling for farmers.
5. Flexibility when making a credit decision.
6. Increasing the fanner income and raising his standard of living.
7. Reviewing the collateral element and reducing routine procedures to some extent.
This chapter studied also the geographical distribution for trainees through APCP in
PBDAC and its affiliates. The study showed that PBDAC ranked the first in respect of
total costs of training programs which reached L.R 148,600. In the second rank, came
the cost of training in Dakahlia Bank for Development and Agricultural Credit (BDAC)
which reached L.E. 68,600 and in the third came Menufia BDAC whose total costs
A
reached L.E. 43,100. Training cost declined in the rest ofBDACs to the minimum from
1987 to 1990 as it reached about L.E. 2,800 in El Wadi El Gedid BDAC.
This chapter highlighted on the qualitative distribution of training courses performed in
the study area, Kalubia governorate, as it showed that courses got by trainees were in
fields of credit, investment, computer, financial analysis, skill building, loan marketing,
and credit risks. The study showed also that 100% of training courses led to upgrading
the officials level in work and they became more positive. For these courses to fulfill
required goals, these considerations should be taken:
• Actual application for what was studied.
• Increasing the number of training sessions and to be on accurate times.
• Number of trainees should not exceed than 20 in one session for optimal benefit.
• A trainee should be from the same field of specialization on which he is trained.
• Training sessions should help in increasing the trainee’s experience.
The study recommended that a number of provisions be available for performing these
training sessions to be more effective as:
• Time and work organization from the