Proceedings: 3rd International Conference on Food and Agricultural Economics: FARM LOAN USING, LOAN PREFERENCES AND PRODUCTION STRUCTURE OF FARMERS: CASE OF MANISA PROVINCE

The aim of this study is to determine the credit usage amounts of farmers in Manisa province and to examine the factors that play a role in the reasons of credit preference. At the same time farmers' agricultural production structures and the use of loans are also put forward. The statistics, survey data and credit data of Saruhanlı and Gölmarmara, (two districts of Manisa province), are examined. Within the scope of this review, important factors such as production capacity, input supply and points of sale of the farmers are put forward, the factors that cause farmers' indebtedness, reasons of credit preference and the need for credit are examined and the problems that arise during the credit usage process are grouped and explained. The Saruhanli and Golmarmara districts, whose data have been analyzed, are important agricultural production centers in Manisa and have low, middle and high income producers. Also land and climate structure suitable for growing a wide variety of agricultural products of both districts. There is a significant level of producer organization throughout the district. A total of 172 farmers were interviewed. While the average land size of the farmers is 10,6 Ha in Saruhanli, this figure is 7,6 Ha in Gölmarmara. In Saruhanlı district, the average agricultural gross income is calculated as 185.000 TL and in Gölmarmara it is 125.000 TL. Some of the farmers have non-agricultural income and non-agricultural income is about 5 to 10 percent of the total income in terms of land size. It was determined that a large part of the interviewed producers needed credit, and that the most demand for loans arose for production inputs. Interest rates, fees/commission rates and collaterals are considered to be the most important factors in loan preferences, and the high or low interest rates are the most influential factors. As the credit source of the farmers, the choice of loan applications between public banks and private banks, which are generally easy on their preferences, the demand for less documents and the possession of a familiar staff at the bank play a role. The borrowing status of the surveyed farmers is very high in the ones with low land size and it is understood that the borrowing rates change depending on the production pattern rather than the land size. It is observed that farmers are also financed by dealers selling inputs outside of credit. Some production inputs are provided by agricultural credit cooperatives, which means that farmers use inkind loans. Farmers usually sell their products to merchants in advance, regardless of the size of the land. A small number of producers sell their products to agricultural sales cooperatives organized in the region. Within the scope of the study, the saving habits of farmers, except for the use of credit, were also examined. An average of 15-16 percent of the interviewed farmers can save. Savings are usually made by taking gold or land, while some producers use structured savings such as private pension. Farmers' agricultural gross income levels are high and profitability levels are low thanks to the agricultural potential of the region and the diversity of the product pattern. Annual gross agricultural profits of producers, especially between 0-5 Ha, are realized as 32.000 TL. It can be said that small-scale producers earn almost as little as a minimum wage employee when the interest rates paid to the loans are deducted. The credit demand of the producers, where both borrowing is high and the level of benefit from the scale economy is low, is increasing day by day. In this respect, it is thought that the producers who are mentioned in this group should be directed to non-credit resources and supported in different ways for the continuation of production.