SCHEME FOR FINANCING FARMERS FOR PURCHASE OF AGRICULTURAL LAND
Small farmer as per NABARD definition:Small farmer shall mean any farmer cultivating land providing a pre development net return to family resources to such farmer and his family not exceeding Rs.4300 at 1981-82 (July-June) prices.
NABARD definition is comprehensive and include small farmers/agricultural labourers, tenant farmers, marginal farmers, share croppers etc.
NABARD has converted the income norm into acerage norm based on pre development net income for convenience.
Providing term credit to small farmers to purchase agricultural land/fallow land /waste land to make the small and marginal holdings economically viable.
For fixing the quantum of loan, the price indicated by the farmer, last 5 years’ average registrations value available with Registrar/Sub-Registrar of the area and the ruling market price of the land proposed to be purchased, whichever is lower, should be taken into account.
a)Hypothecation of crop/assets
b)Mortgage of land purchased out of bank finance/benefiting lands.