Analysis of Factors Affecting Agricultural Credit Usage of Farmers in Eastern Part of Türkiye

Abstract

Agricultural credit is a vital tool for farmers to invest in their farms, improve productivity, and manage financial risks. With proper credit access, farmers can contribute to food security, rural development, and overall economic stability. The aim of this study is to determine the factors affecting the agricultural credit usage of farmers in Patnos district ofA & gbreve;r & imath; Province of T & uuml;rkiye. The data were obtained by questionnaire method from 67 farmers in the study area. The data were analyzed with the use of descriptive statistics and binary logit model. Results from binary logit estimation showed that overall model was a good fit, most of the socio-economic factors were found significant. Age, education years of farmer and record keeping in farm negatively and significantly influenced use of agricultural credit, while frequency of visits to provincial and district directorates of agriculture, participating in an agricultural course, having a tractor, do agricultural insurance and membership in Agricultural Credit Cooperatives positively significantly influenced use of agricultural credit. According to these results, in order to increase farmers' use of agricultural credit, young farmers should be trained on financial literacy and access to credit, and bureaucratic practices that make access to credit difficulties should be reduced.