Financial Financing in Agriculture
Agricultural finance where the financing of agribusiness companies in it is related to financial matters in the agriculture sector. This last sector, in turn, includes the economic sector which together with the industrial sector and the service sector in a country, constitutes the country's national economic sector. Agricultural finance is related to the demand, supply, regulation and application of capital in the agricultural sector, while the financing of agribusiness companies deals with all the needs and arrangements and financial control to finance the status of companies / activities in the agricultural sector. Companies in the agricultural sector are called farming, as long as all the results of these farms are aimed at the market, even though the business rank is still traditional and simple, still subsistent, and is already modern and commercial.
Agricultural finance is a macro study of efforts to obtain capital, use the capital and finally control it in agriculture in an aggregative sense (Rural farmers savings capacity and impact on farm investment), whether it is in the genetical sense including forestry and plantations, or in the fields of animal husbandry, fisheries and in other fields whose results are sourced from nature and surroundings. Agribusiness company financing is part of the study of agricultural finance. The agricultural sector, especially in developing countries has a very important position, even the most important in the overall economic sector.
Agribusiness company financing is a micro study of how to provide capital, then use it, and finally control it in an agribusiness company (Kadarsan, 1992).
Agricultural capital in the macro sense is a factor of capital production that is channeled, managed and controlled in economic activities in the agricultural sector in a broad sense and is one of the national economic sectors. Farming capital in the micro sense is a factor of capital production that is provided, processed and controlled in an agribusiness enterprise or a simple farm. Investment capital is capital that is used to finance the establishment of a company to expand the company's volume or to replace equipment such as machinery, buildings and other capital goods. In the agricultural world usually the largest amount of investment capital consists of capital to buy agricultural land. Operational capital or working capital or also called current capital is used to finance all expenses that cause the company to actively operate. For example, to purchase production materials, equipment, daily or piece rate, and other costs, which in the end after the production process runs will produce products that will be ready to be marketed. Expenditures for consumptive purposes during the operational period are also financed by operational capital (Riyanto, 1983).
Agricultural finance is an effort to get capital, use that capital and finally control it which is carried out in all fields of agriculture in the aggregate sense. Agricultural finance is related to the demand, supply, regulation and application of capital in the agricultural sector, while the financing of agribusiness companies is related to all the needs and arrangements and financial control to finance a company / activity in the agricultural sector (farming) (Kadarsan, 1992).
From the above information it can be concluded that agricultural capital in the macro sense is a factor of capital production that is channeled, managed and controlled in economic activities in the agricultural sector. Farming capital in the micro sense is a factor of capital production that is provided, processed and controlled in an agribusiness company farm or a simple farm. Capital can be in the form of investment capital and operational capital. The use of capital is intended so that agribusiness / farming companies can run and produce to improve the welfare of the community, especially the farming community
Agricultural Extension Funding According to Extension Approach
Approach Model in extension of Assumptions Objectives Cost responsibility
1. The general rural extension approach (Teknolohgi approach in general) useful technology has not been utilized farmers Increased Production. Increasing Government farmer production
2. The Commodity Specialized Approach (development of special commodities) Increased production / productivity due to lack of input research, marketing, etc. Increased production / production of certain commodities, Example: coffee, rubber Association of commodities
3. The Training & Visit approach The extension skills of the instructor are reduced. Supervision reduced. Visit the instructor reduced. Special Subject Matter (-) is understood by extension agents Encouraging farmers to increase special commodities developed by the Government / Central Government / International Funds
4. The Agricultuural participatory approach (participatory approach) Participation in the production of factors can be improved by more effective participatory extension technology. Increasing production. Increased consumption. Improving the quality of life of the community Farmers associations (locally)
5. The Project Approach Acceleration of development can be achieved by a project approach Demonstrating what can be achieved in a few years' time Central government. International donors / funds.