CREDIT WORTHINESS OF SOME FARMERS IN NUBARIA

Abstract

Agricultural credit plays an important and, indeed, crucial role in solving many of the difficult problems faced by farmers, especially their young ones, where financing is the mainstay of agricultural investment. The research problem is the high level of financing requirements in the new lands, in addition to some economic problems facing the agricultural sector in general and the new lands in particular. The objective of the research is to determine the creditworthiness of a sample of farmers in the new lands and to determine their ability to achieve a return that allows the repayment of the loan Its cost, and increase the net income of the borrower. As well as to identify the social and economic characteristics of the sample of the research, and identify the most important financing problems facing the new land farmers, and how to overcome them. The results showed that the increase in the volume of loans to cover the costs had a positive effect on the productivity of acres of crops. The ratio of debt coverage to the total average yield of field crops was achieved more than once, covering about 1.4 of the total debt. The yield of vegetable crops achieved more than twice, about 2.2of the total debt. As for the ratio of debt coverage to the total average yield of fruit crops, it achieved three times, about 3.3 of total debt. That is, all crops have a return that covers the required debt, ie, they have a high credit capacity. Although the bank is vulnerable to high risk loans, it does not cover the total return of crops by 100% although all the sample has guarantees other than crop yield, which makes them have credit capacity exceeding 100% of their crop yield. To cover the bank debt from the net yield of crops.