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Journal: International journal of ecosystems and ecology science (IJEES) (Vol.3, No. 4)

Publication Date:

Authors : ;

Page : 747-752

Keywords : Private investment; agricultural credit processes; financing mechanisms; production costs; rural infrastructure.;

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Agriculture is an important sector of the Albanian economy not only because of its contribution to the Gross Domestic Product, but more for the fact that half of the population provides the revenue base through this sector. In this context, agricultural development is particular importance for the future of the Albanian economy, and to the welfare of the population in rural areas. In recent years efforts have been made to support the agricultural sector. This happened as indirectly through investments in rural infrastructure, as well as directly through initiatives and regulatory initiatives. Such is the law for the establishment of agricultural holdings and various subsidies given by the government to farmers who planted certain agricultural crops. According to INSTAT, for the period 2005-2012, the Gross Domestic Product has grown on average by 4.4%, while the agriculture sector by 4.1%. From these data, although the agricultural sector has increased over the years, is not where it needs to be. Most efficient solution would be to strengthen the sector through private funding in significant monetary amount for raising medium and large farm. Individual farmers not only seek to have the opportunity to meet the needs for inputs, agricultural machinery or equipment, but intend to make investments in greenhouses, vineyards and orchards. One problem is the lack of credit or low level of lending to the agricultural sector in our country related to the low reliability of financial lending institutions have to loan applicants. Farmers in many cases do not have the title in relation to land or are in litigation, which in this case would serve as collateral for lending financial institutions. A successful farm requires not only abundant land but requires a technological infrastructure of production, which is accompanied by a financial bill. This solution should be provided by the funding mechanisms of the market which would lower production costs.

Last modified: 2013-08-27 21:47:22