To double the farmer's income, first of all they should aware of their current income, (apart from nominal or real), so isn't it necessary to educate and increase the financial awareness amongst the farmer's?
Many farmers in 3rd world countries, including our country, have basic [preliminary] education. They are oblivious of financial matters such as cost & profit analysis, increasing income by proper selection of crops, and application of optimum conditions that end up with successful marketing.
Because they are financially illiterate, many farmers passed through repeated cycles of losses. This moved them from the more productive farming jobs to the less productive "white-collar" jobs.
It is the duty of educational institutions & agricultural departments to teach farmers what they need in financial awareness. Once, they know the "golden" value of the land & how to manage it, they will stick to it utilizing most of the potential that is present.
Financial literacy is a process, not a course or licence. So, it may be gained everywhere and in all events.
Financial literacy should be integrated into formal education. But some acquisitions are learned in life, not just schools.
So, it is one skill of financial literacy that A farmer's thinking on the comparison about oil consumption is also one skill of financial literacy.
Unlike, it is financial illiteracy if A manager of a bank wants to make an investment in some areas which she/he don't know.
Don't forget! financial literacy for everyone!
It is distressing to know that many farmers who have minimal or no formal education gain a lot from their proceeds yet, all of the financial gains drains away due to poor management of the gained financial resources. Financial literacy for these farmers would help them mange efficiently their finances, reducing their often impoverished state, having enough start up and working capitals to reduce the seeking for financial loans with skyrocketed interests that takes away all the profit gained by these poor farmers! Lessons on Financial management with the illiterate farmers would be the greatest good we can offer to them, to relief their pain and put a smile on their always sad faces (personally, I have witnessed their deplorable living conditions despite their hardwork while working in rural communities in my research inquiry). Best regards
Dickson Adom
Literacy of Farmers is very important. That has been the biggest challenge of the 3rd world countries. They believe that farmers don't need to be educative to be successful. Although that mentality is gradually fading away. Literacy of farmers increase productivity in large scale.
This is a timely observation. Something must be done about it in the developing nations of the world.Have observed this over and over again.And I do hope we will all pick up a research clue from this .....
Financial Literacy (FL) is a major contributor to the existing gulf between the haves and have nots in the world today. The webster dictionary defines financial literacy as "the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances". Therefore, Financial Literacy is an important prerequisite for farmers from all walks of life to manage their farming business efficiently and to access productive credit. Financial Literacy is therefore crucial element of farmer training in order to pave the way for increases in productivity, income and profitability, improved and sustainable livelihoods.
Because of FL farmers can manage their agricultural systems well. Financial literacy does not only mean making a profit but equally minimising losses. Farmers situations are at times delicate, what becomes critical is to make a safe decision at the right moment. As a farmer you can sell your products at a loss so as to minimise losses. For one to do this it require Financial literacy.
Basic costing of farming activities and all inputs is critical. Farmers need to be able to cost their products properly and make economic decisions in their selling conduct as well.
Financial Literacy simply means making the best out of every situation that you encounter in everyday business.
In answer to this question, it can be said that financial literacy is effective in preventing losses and achieving cost.
It will help farmers to achieve maximum production this will guide farmers to budget for service of machinery based on the working rate of which also will contribute to life span of machinery to avoid break downs.
Truth is it help farmers to plan well and for fun to run effectively.
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