Analyzing the determinants of agricultural credit accessibility for farmers in flood-prone regions

Abstract

Agricultural finance is essential for farmers in flood-prone regions because it offers them access to the money they need to keep their crops running. Crop losses, property damage, and other unforeseen expenditures are quite likely for farmers in flood-prone locations. The provision of agricultural loans is crucial in allowing farmers to minimise these risks and ensure the continuation of their farming operations. The variables affecting farmer’s access to agricultural loans in a Pakistani region in danger of flooding are examined in this research. A structured questionnaire was utilized to gather information from one hundred and sixty-eight subsistence landowners in Khyber Pakhtunkhwa, Pakistan, using a multistage sampling method. According to empirical findings using a subjective slightest squares regression model with vigorous typical errors that accounted for heteroscedasticity, monthly income, family size, education, farming experience, total landholding, and the percentage of owned land were all important determinants of a farmer's ability to acquire loans. The results of this research show that socioeconomic determinants are very important for farmers' access to agricultural loans in Pakistani flood-affected regions. As a consequence, a credit policy is necessary to tackle the issues encountered by farmers who live in dangerous areas. Additionally, the present financing strategy may be altered to defend the rights of occupant cultivators who require security.