Factors Affecting Agricultural Credit Usage Among Peanut Farmers in Türkiye

Abstract

Agricultural credit is a critical financial tool for farmers to sustain and develop their agricultural activities, especially in rural areas where capital shortages are common. The aim of this study was to identify the factors influencing the use of agricultural credit by peanut farmers in Silopi District of & Scedil;& imath;rnak Province and to determine whether there are significant differences in sociodemographic and business characteristics between farmers who use agricultural credit and those who do not. The main material of the study comprised survey data collected from 64 farmers selected using proportional sampling. Descriptive statistics and binary logit models were used for data analysis. Binary logit results showed that overall model fit was good, with most socioeconomic factors being significant. The following socioeconomic factors positively influenced agricultural credit use: schooling years, farming experience, frequency of visits to provincial and district directorates of agriculture, having a high school or higher level of education, being married, benefiting from agricultural subsidies, and having agricultural insurance. On the other hand, having off-farm income, following agricultural innovations, and the volume of peanut production negatively influenced the use of agricultural credit. Based on the results, it is recommended to enhance agricultural extension services, raise awareness of credit options, and develop support programs targeting farmers with limited access to institutions. Simplifying credit application processes and offering customized financial products could also increase credit use among small-scale peanut farmers.