IMPACT OF SOCIO-ECONOMIC CHARACTERISTICS OF FARMERS ON ACCESS TO AGRICULTURAL CREDIT

Abstract

This study aims to study impact of socio-economic characteristics of farmers on access to agricultural credit in Pakistan. Data have been collected using a structured questionnaire from a sample of 80 beneficiaries of formal agricultural credit from the district Swabi of Khyber Pahktunkhwa province. Amount of credit borrowed by the farmers is used as dependent variable whereas, the independent variables are different socio-economic characteristics of the borrowers of the agricultural credit including age, marital status, education, number of dependents, other occupations, farm size, farm status, tenancy status, farming experience, income from farming, and income from other occupations. The dependent variable is a categorical variable; therefore the Ordered Logit Model has been used for analysis of data. Findings suggest that the amount of agricultural credit that can be borrowed by the farmers is significantly affected by their marital status, farm status, farm size, and education level.