Evaluating the Effectiveness of Allocated Bank Loans to Agriculture Sector in Khorasan Razavi Province, Iran

In this study, the effectiveness of granting facilities to water saving pool projects and developing greenhouse crops in the agricultural sector of Khorasan Razavi province was evaluated. Investment is one of the most important factors for economic growth in the countries. Purposeful banking facilities are one of the most important factors in increasing investment and boosting production and can provide the necessary ground for improving the welfare of the community. Hence, today one of the main goals of the government's economic policy is to push resources and bank credits towards productive and capital activities. Also, one of the most limiting inputs for agricultural sector development in Iran is capital. But, the most important question of the capital market is how effective this facility was?

This research is based on descriptive-survey and considering that its variables occurred in the past, it is categorized as case-study research. Statistical population of this study contains experts of Agricultural Jihad Organization of Khorasan Razavi province in fields of water saving pool projects and greenhouse crops development, utilizers of agricultural sector who used facilities of water saving pool projects and development of greenhouse crops plans and also supervising experts of those plans. Sample size of utilizations and supervising experts in each of water saving pool and development of greenhouse crops projects is calculated based on Morgan Table sample size calculator. For this purpose, firstly, by using the Delphi technique, the effectiveness indicators of granting facilities to water saving pool projects and developing greenhouse crops in the form of dimensions: program logic, quality of implementation, results of design and effectiveness, were extracted and then the situation Facility grants to the projects were reviewed during 2011-2012. Finally, by structural equations, the effectiveness of the factors influencing the effectiveness of grant facilities to the plans was measured. The results showed that the logic of granting facilities is of high level and among its indicators; the degree of compliance of facilities with upstream documents is the most logic. The quality of performance of the facility is low and among its indicators, the proportionality of the type and amount of bank guarantee, and the rate of interest repayment with the expected rate of return has the lowest performance.

Results shows that logic of  facilities granted to the water saving pool projects and development plans of greenhouse crops  performed in high level and equivalent to (73/2 %)  and (71/3%) respectively. Also among the logic indicators of program of granting facility to mentioned projects and plans, compliance rate of project facilities with the upstream developing documents is at the highest level of logic. In terms of performance quality , facilities granted to the water saving pool and development of greenhouse crops projects, performed in low level  and equivalent to (41/4%) and (38/3%) respectively. Also among the performance quality indicators of granting facilities to mentioned projects, indicators of proportion of type and amount of bank guarantee according to utilization capability, the interest rate proportion of repayment of the facility at the expected rate of return and proportion of repayment amount and utilization capability, respectively had lowest quality of performance and caused disaffection of utilizations. operational results of  granting facilities to water saving pools and development of greenhouse crops projects have almost a moderate level and equivalent to (56/5%) and (55/7%) respectively. Also according to indicators of operational performances of mentioned projects, success indicators of granting facilities and compliance rate of project details and operational plans, have the least expected operational performance rate respectively.
The results of study also indicated that efficiency of granting facilities to water saving pool as well as development of greenhouse crops projects have almost a mediocre level equivalent to (56/8%) and (55/6%) respectively. Among the efficiency of granting facilities to water saving pool project, indicators of Level of cultivation, increase of production, and increase of sustainable employment, standing in first to third rank respectively. Also product quality improvement index has the least efficiency. Among the indicators of the effectiveness of the granted facilities to the project of development of greenhouse crops, product quality improvement, efficiency increase, value added and performance improvement indicators have the least efficiency.
 

Generally, results of interviews with utilizers and experts shows that facilities granted to examined utilization by agricultural sector of Khorsan Razavi province among these years of Research, have not been effective mostly due to various factors such as unfavorable economic conditions prevailing in the period under study, Changes in rules and regulations, Frostbite, Drought and Finally, the lack of support and assistance from the banking system.Therefore, it is recommended to officials of this section to create a proportion between the returns and the rate of interest repayment, the assistance of banks with the affected operators and, in particular, the development of insurance for agricultural products.