Structural characteristics of the agricultural sector in terms of access to agricultural credits in Turkey

Structural characteristics of the agricultural sector in terms of access to agricultural credits in Turkey

New Medit, vol 16, n.4, (December 2017), pp. 66-72

Language: EN
Jel classification: E60, Q14

The purpose of this study is to determine the credit needs and analyse the structural effects o loans with a view to contributing to develop strategies with banks, cooperatives and all other institutions and organizations involved in agricultural credit. The master data was processed using the primary data obtained from 2,029,116 farms. Farmers are registered with the Farmer Registration System and 640 are registered with the Farmer Accounting Data Network. Farms were classified based on farm type and cropping system. Results showed that the education level of farmers is low and household size is high, farm holdings are small and fragmented and there is an imbalance in land distribution. These characteristics affect negatively the utilisation of credit, although 56% of farmers utilise credits and the equity ratio is very high (97.3%). The new regulations on the Inheritance Law will help both increase farmland and solve the problem of fragmentation in Turkey. The institutions and organizations concerned should satisfy this demand taking into account the specific characteristics of the sector (by facilitating utilisation of credit, supporting small businesses and providing additional loan opportunities, renewing machine fleet and regulations on land acquisition) in order to contribute to its advancement.

Turkey, structural development, agricultural credits

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