Agriculture · Agricultural Finance

A Long-Term Loan sanctioned for land development, such as bunding and reclamation of degraded land, is primarily based on the principle that the repayment is generated from:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The consumption component of the KCC limit
2The sustained increase in the long-term productive capacity and value of the land✓
3Sale of the farm equipment purchased
4The immediate increase in crop yield in the next season

Correct answer

The sustained increase in the long-term productive capacity and value of the land

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