Investigating the Factors Affecting Agricultural Credit in the Boyerahmad County

Agriculture credit is an important problem in agricultural sector. Therefore to be effective in increasing farmers income level and economic progress, its distribution and application should be attention. In this study, agricultural credit demand in Boyerahmad County was estimated by profit function of output- price relationship. Data was collected in the year of 2008, by a sample of 121 farmers in villages of Boyerahmad selected based on stratified random sampling procedure. Results indicated the negative relationship between demand and input prices and a positive relationship between demand and output price. Both mentioned variables have high elasticity, this meaning that one percent increase in both of them, increase demand more than one percent. Also variable include acreage, farm family labor and machinery have positive effect on demand whit the elasticity less than one. According to results, it is suggested that government and especially agricultural bank payment of subsidy credit, will lead to increased profits and reduced demand for loans.