Sources and Uses of Agricultural Credit by Farmers In Dera Ismail Khan (District) Khyber Pakhtonkhawa Pakistan

Abstract

The role of credit in agricultural economy is vital and its restraints which can affect farmer's investment actions necessitate the analysis of sources of agricultural credit and its uses in Dera Ismail Khan. Data was collected from three hundred and twenty respondents through structured questionnaire who were selected randomly .The study found that most of the respondents obtained loans through formal sources. Commercial banks were found the most popular source and credit was mostly used for production purposes. The results also showed that larger percentage of the credit obtained by most of the respondents was used for seeds, fertilizers and pesticides. However, to ensure effective utilization of sources of credit, establishment of agricultural and commercial banks in the rural areas with simple procedures of securing loans, mobilization of farmers into formidable groups in order to enjoy the benefit of collective investment of group savings and demonstration regarding use of new farm technology by extension agents with in reach of farmers is recommended.