Identification Factors Affecting on Agricultural Credits Allocation (Cease Study: Pistachio Growers in Sirjan)

Document Type : Research Paper

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Abstract

Supply of credits to farmers is necessary because of the importance of credits in order to assurance the efficiency of production process. The purpose of this study is identification factors affecting on credits allocation to agricultural activities and factors affecting on probability failure to repay of credits received. In this study, 196 farmers and customers who have received loans from the Agricultural Bank were randomly selected. Statistics and necessary information were collected by questionnaires and investigation of customers file for the years 2010 -2013. Factors affecting on credits allocated to the agricultural activities was identified using Tobit model. Based on this model, there was a direct and significant relation at level of confidence 95 percent among variables of age, educational levels, experience, annual income from non-agricultural activities, amount of credits received and credits allocated to agricultural activities. There was an inverse and significant relation among variable of family size and credits allocated to agricultural activities. Also, probability failure to repay of credits received modeling was done using Logit Multinomial model. In this model, there was an inverse and significant relation at level of confidence 95 percent among variables of age, educational levels, value of the assets, monthly income of the applicant and probability failure to repay of credits. Gender had a direct and significant relation with probability failure to repay of credits. Based on the results of this study suggestions were presented.

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References

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Iranian Journal of Agricultural Economics and Development Research
Volume 47, Issue 2
December 2016
Pages 303-311

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