Determinants of Credit Use in Turkish Agriculture

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Year:
2016
Type of Publication:
Article
Keywords:
Agriculture, Credit, Quantile Regression, Turkey
Authors:
GUNES, Erdogan; MOVASSAGHI, Hormoz; OZER, Osman ORKAN
Journal:
IJRAS
Volume:
3
Number:
4
Pages:
216-222
Month:
July
ISSN:
2348-3997
Note:
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. CC BY-NC-SA 4.0 Creative Commons License: https://creativecommons.org/licenses/by-nc-sa/4.0/
Abstract:
In this study, we investigated sources, types and factors that influence agricultural credit use in selected regions of Turkey. Data was collected from interviews with 500 farmers in five provinces during the 2014-2015 agricultural production season. Factors affecting credit usage have been examined using Quantile Regression analysis. We found that the type of farm ownership (in this case, family owned and operated farms), size of cultivated land, amount of fixed and operating capital, and other indicators of financial status such as their current assets and liabilities were the most significant factors affecting credit usage. More specifically, family labor size, amount of capital and cultivated land were positively associated with the usage of agricultural credit. On the other hand, the larger was farmers’ fixed capital and the higher their wealth, the less likely they were to use agricultural credit.

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