Factors Influencing the Potential Demand for Credit by Farmers on their Tendency for Producing Greenhouse Organic Cucumbers in Khorasan Razavi Province

Document Type : Original Articles

Authors

1 Young Researchers Club, Gorgan Branch, Islamic Azad University, Gorgan, Iran

2 MSc. Abryz Zmyn of Alborz (Catchment Earth of Alborz) Company

3 MSc. Department of Earth Sciences, Faculty of Petroleum Engineering, Technical University of Delft , The Netherlands

4 -Young Researchers Club, Gorgan Branch, Islamic Azad University, Gorgan, Iran

Abstract

This paper examined factors influencing potential demand of farmers’ credit to tendency for producing greenhouse organic cucumber in Khorasan Razavi province using linear regression and cross sectional data of 60 greenhouse cucumber producers in 2008. Data were collected using a questionnaire and census method. Results showed that the financial ability to investment in producing greenhouse organic cucumber required credit for the adoption of greenhouse organic cucumber production and the interest rates on offer are 30 million rials, 328 million rials (at a greenhouse level with an average area about 2700m2 and 4.82 percent, respectively). Evaluation of farmers' attitude showed that 66.7, 66.7, 86.7 and 53.3 percent of farmers will invest the credit in purchasing organic fertilizer, purchasing biological control services, creation a suitable organic agronomic environment and the purchase of mechanical control services, respectively. Also, the relationship between the farmers' job, agricultural advisory, agricultural experience, organic market information, financial ability to invest in organic cucumber and potential demand of credit for producing greenhouse organic cucumber is negative. The relationship between the age of farmers, cucumber insurance, average yield of conventional cucumber, information about organic cucumber, cultivated area allocated to organic cucumber, interest rate offered, participation in extension classes and potential demand of credit for producing greenhouse organic cucumber is positive. Regard to the results, the following are suggested: creating an organic products market information system, encouraging farmers to full-time farming, promotion of farmers’ revenues towards increasing their financial ability for investment, use of agricultural supervision, promotion of their role in producing greenhouse products and orienting insurance towards effectiveness in decreasing of risk and increasing production.

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