FARMERS MOTIVATION IN BANKING AGRICULTURE CREDIT LOANS

2003

This paper analyzes farmer decisions regarding acceptance and repayment of agricultural credit in Lombok, Indonesia. A survey was conducted during July 2001-March 2002 in Central Lombok, where the current KKP government credit scheme is provided to agricultural producers. Three villages within the regency were sampled, representing various repayment rates of government credit. Data were collected using face-to-face, semi-structured interviews with 65 farmers who had made use of government or other sources of agricultural credit.

E3S Web of Conferences

Agriculture is one of the most important sectors to support household economy in West Nusa Tenggara (WNT), dominated by small holder farmers. This paper aims to provide insight on smallholder farmers attitude to access bank under integrated crop-livestock system in WNT. A survey was conducted in 2021 in East Lombok, Sumbawa and Bima districts covering 103 farmers. This study found that farmers in Lombok has less interaction with bank compared to Sumbawa and Bima. Reasons mentioned were afraid to be unable to repay, no collateral, and no need to loan. Conversely, farmers in Sumbawa and Bima have accessed bank loan for more than 5 years to support crops and cattle farming. This difference was also associated with resources. Average land and cattle ownership per household in East Lombok were much lesser than in Sumbawa and Bima, 0,4 vs 2 and 0,7 ha respectively, and 1-2 vs 4-5 and 5-6 head respectively. Loan for crops farming often get repaid from selling cattle. Hence, it is concluded...

2003

In Indonesia, national historical records show increasing agricultural credit provision by government, yet farmers seem to be unable to escape poverty. In addition, the repayment of credit has tended to be lower as years proceed.

Agrisocionomics, 2023

Credit is one of the most effective financings at the farmer level because it is more easily accessible to micro-enterprises and is intended to empower farmers to increase their production. However, access to credit at the farmer level is not easy. In addition, the small scale of the farmer's business causes the limited ability of farmers to increase business capital through microfinance institutions and banks. This study aims to analyze factors influencing farmers to take credit in Indonesia. The data analysis method used is binary logit regression which can analyze the relationship between variables that are thought to influence the decision of farmers to take credit using fourteen predictor variables consisting of five demographic variables and nine livestock business variables. The data is sourced from the 2014 Livestock Business Household Survey with a total sample of 42,392 because data that can be used to represent and complete on a national scale for the livestock sub-sector. The results showed that the variables that influenced the decision of farmers to take credit, namely the location of the livestock business, the age of the breeder, gender, type of livestock, number of dependents in the family, farming experience, land ownership, association membership, collective membership, farmer groups, counseling, and partnerships had a significant effect. Statistically. While the variables of education level and ownership of livestock business facilities are not statistically significant. Thus the policy of providing financing and capital facilities through credit distribution as a strategy for empowering farmers and micro business actors in the agricultural sector can be an incentive for farmers to increase their production and can continue to be an instrument of agricultural capital policy.

International Journal Innovative Science Research and Technology (IJISRT), 2019

The purpose of this research was to obtain data and information on the attitudes of Bali cattle farmers in four Timor Island agroecosystems, namely agroecosystems of pasture, agriculture, plantation and forest towards business credit assistance for the development of Bali cattle farms. For this reason, this research was conducted from January to December 2018. Determination of the location is purposive representing agroecosystems of pasture, agriculture, plantations, and forests. Respondent determination 5-10% of the number of farmers in each agroecosystem with the number of Bali cattle > 10 tail. Primary and secondary data collection through observation, interviews, and documentation. The data processing method uses a Likert scale with scoring and then analyzed the data descriptively. The results showed that the attitude of farmers to credit assistance showed that Bali cattle farmers in the agroecosystems of pasture and agriculture were still doubtful about the benefits of credit, credit goals, credit procedures and credit risk with the scoring value in each agroecosystem is 4320 and 3564. Whereas farmers in agroecosystems of plantation and forest agreed to credit benefits, credit targets, credit procedures, and credit risk with scoring values in each agroecosystem sequentially 3589 and 3746. Differences in the attitudes of farmers towards credit assistances are strongly influenced by farmers' perceptions which are very much determined by the aspects of farmers age, motivation, and income of the farmers from the Bali cattle business. Farmers in agroecosystems of pasture and agriculture in this research were on average older (42,8 and 43,3 years) compared to farmers in agroecosystems of plantation and forest, namely 41,7 and 42,2 years. Based on motivation, Bali cattle farmers in agroecosystems of pasture and agricultural tend to be socially oriented compared to farmers in economically oriented agroecosystems of plantation and forest. One of the factors that influence income is BEP. Farmers in agroecosystems of plantation and forest in this research have a relatively small cattle BEP but a favorable BEP price. Thus the aspects of the age of the farmer, the motivation of the farmer, and the income of the farmer from the Bali cattle business are factors that influence the farmers' perceptions of the aspects of the credit assistance of Bali cattle farms.

International journal of scientific technology and research , 2020

Agriculture plays an important role in the development of the Indian economy. The prosperity of the country depends up on the agriculture sector. It plays a strategic role in the economic life of the Indian society. In India agriculture contributes one-third of the national income. Sixty percent of the export directly or indirectly originates from agriculture sector. Finance is one of the major critical inputs for agricultural development. It capitalizes farmers to undertake new investments and/or to adopt new technologies. To develop the agriculture activities farmers are always need a financial support. Institutional credit, which played a essential role in the development of agricultural sector. The purpose of the study is to know the farmers'opinion regarding agriculture credit towards financial institutions in Tirunelveli district. A Multi stage sampling method was used to select the banks. Convenience sampling method has been used for selecting the farmers. The Tirunelveli districts were chosen for sample, because those Tirunelveli districts were provided highest number of agriculture credit than other districts. The sample size for the study is 230. The study concluded that, the most influencing factors are agriculture credit helps to adapt modern technology, agriculture credit Improved your overall standard of living, agriculture credit help to cope with recover from stress and shock and Lack of Information about schemes and reforms are the farmers opinion regarding agriculture credit towards financial Institutions.

Humanities & Social Sciences Reviews

Purpose: This paper aims to analyze the role of Islamic banking in improving the agricultural sector as well as providing alternative solutions such as financing scheme for agricultural financing. Methodology: The research method is qualitative. A review of the extant literature was carried out for collecting primary and secondary data. In-depth interviews with key informants such the farmer and Islamic bank financing manager were also conducted. Data analysis was performed by adopting data reduction, data display with SWOT matrix, verification, and conclusion. Main findings: This paper finds that Islamic banking allocates financing for agricultural sector which is less than 10 percent of total financing. The finding is in line with the problem faced by the farmer. Based on the interview, it is known that the main problem of agriculture industry is limited access to the source of capital. The second finding pertains to the lack of Islamic banking’s role in agricultural financing cau...

isara solutions, 2019

The Agricultural loans are available for a multitude of farming purposes. Farmers may apply for loans to buy inputs for the cultivation of food grain crops as well as for horticulture, aquaculture, animal husbandry, and floriculture and sericulture businesses. There are also special loans to finance the purchase of agricultural machinery such as tractors, harvesters and trucks. Construction of biogas plants and irrigation systems as well as the purchase of agricultural land may also be financed through special types of agricultural finance. The focus of the study is on the canara bank agricultural credit services provided to the farmers. The factors influencing farmers satisfaction for a particular bank are the time, quality of services and convenience to its farmers. This has been taken as the main focus for the study. The views of farmers belonging to different strata of society are also taken into account in this study. The present scenario of the agricultural sector clearly shows that the agricultural sector has been commercialized since last few years. Consequently the market of the agricultural loan has experienced tremendous growth over the past few years.

EPRA International Journal of Multidisciplinary Research, 2021

Abstract Agriculture plays most important role in Sri Lankan economy like some other developing nations in South Asia such as India, Bangladesh, Pakistan, Nepal and Bhutan. In this way, the agricultural farming sector is identified as a key tool for the economic development in Sri Lanka and it helps to effectively utilize the invaluable resources of the country such as green lands and appropriate climate as it should be and to significantly boost the wealth of the country as well. Furthermore, as it helps to expand the level of GDP, the Interest rates as well as the inflation rates are mostly estimated at present depending on the level of agricultural cultivation sector in the country. It is noteworthy to point out at this occasion that as Sri Lanka is mainly an agricultural nation the most people are involving in individual and joint venture farming activities. At the same time, it is also very important to mention here that most people who involve in agricultural cultivation reach the banks and financial institution for the purpose of getting loans to meet their agricultural financial needs. In this context, this research aims to identify the loan systems which are implemented in agricultural sector among the Muslim community, especially among Muslim farmers who are living in Kekirawa divisional secretariat in Anuradhapura district. The research would be extremely significance due to there is no sufficient previous studies find concerning with agricultural loan systems among Muslim community in particular research area in Sri Lanka. This research is designed as mixed method with the inclusion of qualitative and quantitative data which collected in term of finding the correct solutions and providing appropriate recommendations. The findings of the research reveals that the farmers who live in Kekirawa divisional secretariat of Anuradhapura do not depend and connect with banks or other financial institutions to get any advances, but they use to fulfil their needs of capital for farming from money lenders, shopkeepers, friends relatives and NGOs. Therefore, the system should be introduced under the Islamic banks and financial institutions to promote the Shariah compliance products and interest free loan systems not only for Muslim farmers but also to all citizens who wish to involve in agricultural cultivations. Moreover, NGOs and shopkeepers who provide agricultural credit services should be adapted in accordance with the Islamic Shariah compliance. Key words: Agriculture, Loan Systems, Farmers, Kekirawa. Shariah Compliance, Islamic Banks

European Journal of Agriculture and Food Sciences

An effort to encourage increased food productivity is directly proportional to the limited access of farmers on capital financing resources. The purpose of the research is to describe the financial literacy rate of farmers in Madura. The data analysis method uses a descriptive (qualitative) analysis and a different test (T-Test) with IBM SPSS. 23 Software support. The results of the research obtained that food farmers in Sampang and Bangkalan districts have a relatively moderate financial knowledge with all its limitations. Their understanding is sufficient about the knowledge principle of bank interest calculation, the time value of money, the general rules of the bank, the definition of inflation, risk and profit received. However, financial behavior and attitudes are categorized less. The difference of the principal of Madura food farmers in both research areas namely Sampang Regency and Bangkalan District is located on the component of the Financial Knowledge Index.