The country, state, municipality finance and the city is known as public finance. Finance of states is concerned with the four steps. These four steps are mentioned below:

The budgeting process

Sources of the entity revenue

Debt issuance for public works project and

The identifications of the required expenditure of a public sector entity

Finance of states are divided into four types such as direct loan programs, loan participation programs, other agricultural development finance programs and the gurantee loan programs. All these types of state agricultural finance programs are discussed below.

Guarantee loan programs
Many states established state -backed guarantee loan programs with small issues of the activity of bonds and taxable bonds and permute the states in agricultural and industrial business.

Loan participation programs
When the state agency purchases a loan from a local lender, then these programs help in the form of equity farmers and ranchers obtain agricultural loans.

Other agricultural development finance programs
Many states also operate the specialized in loans and finance programs serving in a different kinds of targeted purposes and including the programs for a livestock and a poultry producers, irrigation, conservation, cooperative development and many more.

Direct loan programs
Several states of the legislatures have suitable for the funds so that they direct financial assistance, in the form of direct loans which can be provided by the state agricultural agencies or authorities. The main goals of these loans are to include the ethanol production facilities value-added agricultural products like the agricultural production and aquaculture development.

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