Comparative Analysis of Farmers’ Behavior In Terms of Agricultural Loans’ Spending

Varmazyari, H.; Kalantari, Kh.; Shaebanali Fami, H.

doi:10.22067/jead2.v1389i3.7732

Comparative Analysis of Farmers’ Behavior In Terms of Agricultural Loans’ Spending

Document Type : Research Article

Authors

H. Varmazyari

Kh. Kalantari

H. Shaebanali Fami

Agricultural Development Management and Development, Faculty of Agricultural Economics and Development, Tehran University

https://doi.org/10.22067/jead2.v1389i3.7732

Abstract

Abstract
Although farmers always have been seriously depended on the banks for their capital formation, but the more important issue, which has been less considered, is to investigate how the agricultural loans are spent by farmers and to explain principles of productive use of the loans. The present research aims to investigate how different groups of farmers spend the loans and to explain the related discriminatory variables. The sample (n=120) was selected through stratified sampling method, from a population including Khoy County farmers who had borrowed agricultural loan during 2002-2007 at least once (N=4592). The results showed that farmers were different from each other in terms of loans' spending behavior because of variables including "type of agricultural loan, use of crops insurance, monitoring times on the quality of loan use, loan amount, and educational level".

JEL classification: Q14

Keywords

Agricultural loans' distortion

Spending

Experts’ monitoring

Crops insurance