Credit Use of Agricultural Producers in the Context of the Banking System and Analysis of Production Finance: The Case of Bafra

Abstract

The main channels used in financing agriculture are Agricultural Credit Cooperatives, Public Banks, Private Banks and the manufacturer‘s environment. Producers choose financing channels; they vary depending on their work experience, traditional behaviour, education level, openness to innovations, following economic developments and taking out agricultural insurance. In this study, face-to-face interviews were held with 153 agricultural manufacturers operating in Bafra, and data were collected through interviews and open-ended questions. As a result of the analysis, a significant relationship was found between the increase in the ratio of manufacturers‘ education, being open to innovations and following economic developments towards private banks other than public institutions. In terms of using financing resources other than public institutions, manufacturers; While a significant relationship was determined between social security status and agricultural insurance usage levels; on the other hand, when age is evaluated with traditional behaviours, the relationship turns out to be meaningless. As the work experience of the manufacturer increases, the tendency to obtain funds from the unorganized environment increases. Effective communication channels should be established for the manufacturer to be aware of and implement innovations and to have the infrastructure to determine the financing method suitable for them. In order to ensure effective communication, agricultural enterprises should be cleansed from wrong financing practices and their financial structures should be preserved, especially by increasing public support and publications and activities.