A research study submitted in partial fulfillment of the requirements for the degree of Master of Science

Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 1985

The objective is to identify those socio-economic factors which. determine farmers reliance on in situational and non-institutional. sources of credit. The analysis is based on descriptive statistics, a multiple regression model and a Likert-Scale index. The strongest influence on the amount: or farmers{u2022} loans was exerted. by farm household expenditure which consists of farm and off-farm expenses. Furthermore, non-agricultural income is a significant factor since it. has the decisive impact upon farmers{u2022} repayment. Target group members{u2022} general attitudes toward the various types of credit agencies were positive. Specifically, farmers were not satisfied with the then credit programmes and. services of: the bank for Agricu1ture and Agricultural co-operatives (BAAC) and of the Land Reform Agricultural co-operatives (LRAC). Recommendations for planning include diversification in crop production, crop enterprise specific loans, and one-year credit lines that link .both farmer producer and trader to a single institutional source or credit which ought to be the Bank. for Agriculture and Agricultural cooperatives (HAAC). Recommendations for further research focus on sorghum production and performance evaluation or financially successful farmers.