Agricultural credit is refers to loans that extended for agricultural purposes. Agricultural credit systems promote the expansion and continued survival of farm and livestock operations, covering the entire agricultural chain - input supply, production and distribution, wholesaling, processing and marketing. Banks lend to farmers for a variety of purposes, including (1) short-term credit to cover operating expenses, (2) mid-term credit for investment in farm equipment and real estate improvements, (3) long-term credit for composition of farm real estate and construction financing, etc.