| Peer-Reviewed

Comparative Analysis of Agricultural Credit System and Organization in Selected Countries

Received: 26 June 2017     Accepted: 19 July 2017     Published: 9 September 2017
Views:       Downloads:
Abstract

The agricultural sector has been a key economic force in all countries, developed and developing alike. To assist farmers with their financing needs, countries have established different agricultural credit systems and organizations depending on their overall needs, goals, and historical contextual background. Such structural considerations as the aggregate size of farm lands, diversity in production systems, and farmers’ needs and wants have played an important role in shaping the evolution of agricultural credit organizations around the world. In this study, the agricultural credit systems in select developed and developing countries which offer a mix of very advanced, intermediate, and evolving systems are compared. This research aims to identify key difference of agricultural credit systems with regards to the main actors involved (governmental/private banks, credit cooperative, etc.), application processes, terms and conditions, types, and priorities. The study identifies several agricultural credit systems which reflect countries’ political, economic and structural properties.

Published in International Journal of Applied Agricultural Sciences (Volume 3, Issue 5)
DOI 10.11648/j.ijaas.20170305.14
Page(s) 123-135
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Agricultural Credit Systems, Financial Institutions, USA, Emerging Economies

References
[1] Monke J. (2015/a). Agricultural Credit: Institutions and Issue, Congressional Research Services Report. April /8 /2015.
[2] https://www.farmcreditfunding.com/farmcredit/.
[3] Kumar, S. M. (2012). Does Access to Formal Agricultural Credit Depend on Caste? World Development Vol. 43, pp. 315–328, 2013 http://dx.doi.org/10.1016/j.worlddev.2012.11.001.
[4] Assunção, J., Gandour, C., Rocha, R., Rocha, R. (2013). Does Credit Affect Deforestation? Evidence from a Rural Credit Policy in the Brazilian Amazon CPI (Climate Policy Initiative) Technical Report. Rio.
[5] OECD (2013). Agricultural Policy Monitoring and Evaluation 2013 OECD Countries and Emerging Economies-Brazil- www.oecd.org/publishing/corrigenda.
[6] Tang, S., Guan, Z., Jin, S. (2010). Formal and Informal Credit Markets and Rural Credit Demand in China, Agricultural & Applied Economics Association 2010 AAEA, CAES, & WAEA Joint Annual Meeting, Denver, Colorado, July 25-27, 2010.
[7] Turvey, C. G., Kong, R., and Huo, X. (2009). Borrowing amongst Friends: The Economics of Informal Credit in Rural China, Paper Presentation IAAE Beijing August 2009.
[8] Han, J. (2004). The Creation of a Favorable Environment for Investment in Rural China: Current Situation and Future Prospects, China in the Global Economy Rural Finance and Credit Infrastructure in China, OECD workshop publication.
[9] Scott, D. and Druschel, K. (2004). Institutional Issue and Prerequisites for Efficient Savings Mobilization and Allocation in Rural and Lesser Developed Regions in China, China in the Global Economy Rural Finance and Credit Infrastructure in China, OECD workshop publication.
[10] Swinnen, J. F. M. and Gow, H. R. (1999). Agricultural Credit Problems and Policies during the Transition to a Market Economy in Central and Eastern Europe, Food Policy 24 (1999) 21–47.
[11] Jansson, K. H., Huisman, C. J, Lagerkvist, C. J, and Rabinowicz, E. (2013). Agricultural Credit Market Institutions A Comparison of Selected European Countries, Factor Markets Working Paper No. 33/January 2013.
[12] Ho, G. (2004). Rural Credit Markets in Vietnam: Theory and Practice, Gary Krueger and Vasant Sukhatme Department of Economics Macalester College.
[13] Gunes, E. and Artukoglu, M. M. (2010). Agricultural Credit Efficiency and Applications In Turkey During Global Financial Crisis, Turkey IX. Agricultural Economics Congress, p. 795-801, Sanlurfa, (In Turkish).
[14] Nagendra, S. and Reddy, C. L. K. (2015). An Analysis of Agricultural Credit Structure in India, Indian Streams Research Journal Volume 5, Issue-1, February.
[15] Tanrivermis, H. and Bayaner, A. (2006). Members' Perception and the Role of Agricultural Credit Cooperatives in Agricultural Finance in Turkey, New Medit N. 3/2006.
[16] Bojnec, Š. (2011). Agricultural and Rural Capital Markets in the EU Candidate Countries: Croatia, the Former Yugoslav Republic of Macedonia and Turkey, Comparative Analysis of Factor Markets for Agriculture Across the Members States, Factor Market Working Paper No. 8, October 2011.
[17] Nwaru, J. C., Onyenweaku, C. E., and Nwosu, A. C. (2006). Relative Technical Efficiency of Credit and Non-credit User Crop Farmers, African Crop Science Journal 14 (3): 241-51. Farm Credit Second Quarter 2015, Quarterly information Statement of Farm Credit System.
[18] Etonihu, K. I., Rahman, S. A., Usman, S. (2013). Determinants of Access to Agricultural Credit Among Crop Farmers in a Farming Community of Nasarawa State, Nigeria, Journal of Development and Agricultural Economics, Vol. 5(5), pp. 192-196, May, 2013 DOI 10.5897/JDAE11.126.
[19] Akram, W. (2008). Constraint’s Analysis of Agricultural Credit Use: Implications for Poverty Reduction in Pakistan, A Dissertation Submitted to the Department of Economics University of Sargodha.
[20] Bishoff, J. M. (2008). Agricultural Finance and Credit, ed., NY Nova.
[21] Monke, J. (2008). Agricultural Credit: Institutions and Issue, Chapter: 5, Agricultural Finance and Credit, NY Nova.
[22] http://www.farmcreditnetwork.com/about/history
[23] http://www.farmcreditnetwork.com
[24] Monke J. (2015/b). Agricultural Credit: Institutions and Issue, Congressional Research Services Report. April /6 /2015.
[25] http://www.farmcreditfunding.com/ffcb_live
[26] http://www.farmcreditfunding.com/farmcredit
[27] http://www.farmcreditfunding.com/farmcredit/current/InformationStatement.pdf?uniq= 1444748408705.
[28] http://www.aba.com/Industry+Issues/issues_ag_menu.htm
[29] http://www.icba.org.
[30] OECD (2004). China in the Global Economy Rural Finance and Credit Infrastructure.
[31] Empel, G. V. and Smit, L. (2004). Development and Sustainable Credit Cooperatives in China, China in the Global Economy Rural Finance and Credit Infrastructure in China, OECD workshop publication.
[32] Lin, Y. F. (2003). Information, Informal Finance and SME Financing, China Center for Economic Research, Working Paper, No. C2003025.
[33] Gale, F. and Collender, R. (2006). New Directions in China’s Agricultural Lending, USDA Electronic Outlook Report From The Economic research Service, 2006.
[34] Zhang, H. 2004. The System of Chinese Rural Financial Organizations: Achievements, Shortcomings and Institutional Renewal, OECD Workshop Publishing.
[35] Tang, S. (2008). The Relationship between Credit Access and Agricultural Economy, Journey of Northeast Agricultural University, Edition of Social Sciences. No. 1.
[36] Jiang, S. J. (1984). How Are the Various Types of Non-Bank Credits in Rural Areas at Present to be treated? Rural Finance Research Institute, Guangxi Zhuang Autonomous Region, July.
[37] Feder, Gershon, Lawrence J. Lau, Justin Y. Lin, and Xia-openg Luo. (1990)." The Relationship between Credit and Productivity in Chinese Agriculture: A Microeconomic Model of Disequilibrium." American Journal of Agricultural Economics. Vol. 72(5): 1151-1157.
[38] Yao, Y. J., and Chen, D. F., (2005). The Development of China Rural Informal Finance-Theory and Empirical Study, China Rural Economy. No. 8: 45-51.
[39] He, G. W, (2007). The Diversities and Strategy of China Rural Financial Institutions, The Observation of China Rural Finance, P 12-20.
[40] Godara, R. L., Singh, P., Singla, S. (2014). Agriculture Credit in India: An Analytical Study, International Journal of Latest Trends in Engineering and Technology (IJLTET), Vol. 3 Issue 3 January 2014.
[41] Golait, R. (2007). Current Issues in Agricultural Credit in India: An Assessment, Reserve bank of India Occasional Papers, 28(1), summer.
[42] Gandhimathi, S. (2012). Distribution of Agricultural Credit in the Pre and Post Reform Period, IJMIE, Vol: 2, Issue: 9.
[43] Mohan, R. (2004). Agricultural Credit in India: Status, Issues and Future Agenda, November Reserve Bank of India Bulletin 2004.
[44] Kishore, N. T. K. (2012). Agriculture Credit in India: An Integrated Rural Credit Approach, International Journal of Scientific and Research Publications, Volume 2, Issue 3, March 2012.
[45] Subbarao, D. (2012). Agricultural Credit-Accomplishments and Challenges, Governor of the Reserve Bank of India, at the thirty years anniversary celebration of NABARD, Mumbai.
[46] Salami, S. and Arawomo, D. F. (2013). Empirical Analysis of Agricultural Credit in Africa: Any Role for Institutional Factors? African Development Bank Group Working Paper Series. No: 192, African Development Bank, Tunis, Tunisia.
[47] Westercamp, C., Nouri, M., Oertel, A. (2015). Agricultural Credit: Assessing the Use of Interest Rate Subsidies, AFD Sustainable Development Department, A Savoir 29.
[48] Rada, N. and Valdes, C. (2012). Policy, Technology, and Efficiency of Brazilian Agriculture, USDA Economic Research Service Report Number 137.
[49] Sobrinho, G. R. C. da C. (2001). Agricultural Financial Policies in Brazil and the USA Comparison, Institute of Brazilian Issues The Minerva Program Fall 2001.
[50] Almeida, L. F de, Zylbersztajn, D. and Klein, P. G. (2010). Determinants of Contractual Arrangements in Agricultural Credit Transactions, R. Adm., São Paulo, v. 45, n. 3, p. 209-220, jul./ago/set. 2010.
[51] Adebayo, O. O., and Adeola. R. G. (2008). “Sources and Uses of Agricultural Credit by Small Scale Farmers in Surulere Local Government Area of Oyo State.” Anthropologist 10 (4): 313-4.
[52] Ijioma, J. C. and Osondu, C. K. (2015). Agricultural Credit Sources and Determinants of Credit Acquisition by Farmers in Idemili Local Government Area of Anambra State, Journal of Agricultural Science and Technology B 5 (2015) 34-4, doi: 10.17265/2161-6264/2015.01.004.
[53] Ljere, M. O., and Mbanasor, J. A. (1998). Agricultural Credit and Economic Development, In Readings in Agricultural Finance, edited by Ijere, M. O., and Okorie, A. Lagos: Longman Nigeria Plc., 111-5.
[54] Okorie, A. (1998). Management of Risk and Default in Agricultural Lending, In Reading in Agricultural Finance, edited by Ijere, M. O., and Okorie, A. Lagos: Longman Nigeria Plc., 90-105.
[55] Tasci, C. (2015). Trends And Issues in Financing Agriculture: A Global Perspective and Look at Turkish Case, Finansal Araştırmalar ve Çalışmalar Dergisi, Cilt 7, Sayı 12, Ocak 2015, ISSN 1309-1123, ss. 173-195. DOI: 10.14784/jfrs.61987.
[56] Yildiz, M. and Kocoglu, E. (2014). A Different View on Agricultural Banking, Agrotime. 8-15.
[57] http://ebulten.bddk.org.tr/ finturk.
[58] Bayaner, A. Bor, Ö. 2006. Do the Policies Always Have the Same Consequences? The Impact of Direct Income Support on Wheat Production: Case of Turkey New Medit, Mediterranean Journal of Economics, Agriculture and Environment. No. 1.
[59] BBDK (2012-2015). Financial Indicators www.bbdk.com.
[60] Oskam, A., Bursell, A., Temel, T., Beckum, S. V., Longworth, N., Vilchez, M. (2004). Turkey in EU, Consequences for Agriculture, Food, Rural Areas and Structural Policy Report, Holland.
[61] Ziraat Bankasi, (2013). More Than a Bank for a Hundred and Fifty Years, http://www.ziraat.com.tr/en/InvestorRelations/Documents/AnnualReports/AnnualReport2013.pdf, annual report 2013.
[62] ACC (2014). The web page of Central Union of Turkish Agricultural Credit Cooperatives. Available at: http://int.tarimkredi.org.tr/index.php/en.html.
Cite This Article
  • APA Style

    Erdogan Gunes, Hormoz Movassaghi. (2017). Comparative Analysis of Agricultural Credit System and Organization in Selected Countries. International Journal of Applied Agricultural Sciences, 3(5), 123-135. https://doi.org/10.11648/j.ijaas.20170305.14

    Copy | Download

    ACS Style

    Erdogan Gunes; Hormoz Movassaghi. Comparative Analysis of Agricultural Credit System and Organization in Selected Countries. Int. J. Appl. Agric. Sci. 2017, 3(5), 123-135. doi: 10.11648/j.ijaas.20170305.14

    Copy | Download

    AMA Style

    Erdogan Gunes, Hormoz Movassaghi. Comparative Analysis of Agricultural Credit System and Organization in Selected Countries. Int J Appl Agric Sci. 2017;3(5):123-135. doi: 10.11648/j.ijaas.20170305.14

    Copy | Download

  • @article{10.11648/j.ijaas.20170305.14,
      author = {Erdogan Gunes and Hormoz Movassaghi},
      title = {Comparative Analysis of Agricultural Credit System and Organization in Selected Countries},
      journal = {International Journal of Applied Agricultural Sciences},
      volume = {3},
      number = {5},
      pages = {123-135},
      doi = {10.11648/j.ijaas.20170305.14},
      url = {https://doi.org/10.11648/j.ijaas.20170305.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijaas.20170305.14},
      abstract = {The agricultural sector has been a key economic force in all countries, developed and developing alike. To assist farmers with their financing needs, countries have established different agricultural credit systems and organizations depending on their overall needs, goals, and historical contextual background. Such structural considerations as the aggregate size of farm lands, diversity in production systems, and farmers’ needs and wants have played an important role in shaping the evolution of agricultural credit organizations around the world. In this study, the agricultural credit systems in select developed and developing countries which offer a mix of very advanced, intermediate, and evolving systems are compared. This research aims to identify key difference of agricultural credit systems with regards to the main actors involved (governmental/private banks, credit cooperative, etc.), application processes, terms and conditions, types, and priorities. The study identifies several agricultural credit systems which reflect countries’ political, economic and structural properties.},
     year = {2017}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Comparative Analysis of Agricultural Credit System and Organization in Selected Countries
    AU  - Erdogan Gunes
    AU  - Hormoz Movassaghi
    Y1  - 2017/09/09
    PY  - 2017
    N1  - https://doi.org/10.11648/j.ijaas.20170305.14
    DO  - 10.11648/j.ijaas.20170305.14
    T2  - International Journal of Applied Agricultural Sciences
    JF  - International Journal of Applied Agricultural Sciences
    JO  - International Journal of Applied Agricultural Sciences
    SP  - 123
    EP  - 135
    PB  - Science Publishing Group
    SN  - 2469-7885
    UR  - https://doi.org/10.11648/j.ijaas.20170305.14
    AB  - The agricultural sector has been a key economic force in all countries, developed and developing alike. To assist farmers with their financing needs, countries have established different agricultural credit systems and organizations depending on their overall needs, goals, and historical contextual background. Such structural considerations as the aggregate size of farm lands, diversity in production systems, and farmers’ needs and wants have played an important role in shaping the evolution of agricultural credit organizations around the world. In this study, the agricultural credit systems in select developed and developing countries which offer a mix of very advanced, intermediate, and evolving systems are compared. This research aims to identify key difference of agricultural credit systems with regards to the main actors involved (governmental/private banks, credit cooperative, etc.), application processes, terms and conditions, types, and priorities. The study identifies several agricultural credit systems which reflect countries’ political, economic and structural properties.
    VL  - 3
    IS  - 5
    ER  - 

    Copy | Download

Author Information
  • Department of Agricultural Economics, Ankara University, Ankara, Turkey

  • Department of Finance and International Business, Ithaca College, Ithaca, USA

  • Sections