Why is the need of credit for farmers?

Farmers need finance mainly for the following things—to pay current expenses of cultivation such as the purchase of seed, manures, etc.; the purchase of cattle, implements and raw materials; acquire new land; or improve land by irrigation, drainage, wedding and planting; pay up old debts to build and repair houses, to purchase food stuffs and other personal necessaries; pay land revenue to the Government; meet expenses connected with marriage and other social events in the family, but jewellery and conduct law suits.  The credit need of agriculturists can, therefore, be broadly divided into directly productive & indirectly unproductive expenses.  Unfortunately fact is that underdeveloped and old countries are in need of both the types of credit.