Archives of Agriculture Research and Technology
[ ISSN : 2832-8639 ]

New Model of Salam sale for Agricultural Development Finance

Research Article
Volume 1 - Issue 3

Al Siddig Talha M Rahma*

Published : July 07, 2020


The new financial economic model derived from the traditional Salam situation. This scenario is based on the idea behind the treatment of risks facing traditional Salam applications, which includes high rates of inflation and the exit of financing from its approved aspects, which cannot enable the farmer or producer to disburse this monetary benefit in the fields of agriculture. Then Banks and financial institutions lose huge amounts of money that are wasted. In addition, lack of understanding of the process of obtaining loans between farmers and producers, this new model can solve many problems and risks in the classic sales of Salam, which rely mainly on granting cash loans. The paper works to monitor and limit the risks posed by the traditional Salam and pushes that agricultural financing loses. It is most important input to financing and then corrects the paper and it relies on this innovative model, which aims to provide the necessary inputs to farmers and producers. This paper attempts to solve this problem by providing inputs directly by updating production through regular and timely operation of modern scientific inputs. The study identified the structural equation model to analyze the results of the analysis of descriptive statistical data, which resulted in the preferred cash financing for farmers as a desirable situation. However, farmers carry unpaid loans, achieve multiple losses faced by the bank, and make it give up its leading role in agricultural financing, and rely on other formulas with purely commercial outcomes. The new innovative financial model is suitable for developing agricultural finance in all countries of the world and making it more appropriate with the requirements of agricultural financing strategies put forward by countries and international institutions.