Credit access and financial literacy in cattle breeding: The case of Tokat central district

This study was conducted in the central district of Tokat province in order to reveal the effect and importance of the level of financial literacy by examining the socio-demographic structures, assets in the production process (shelter, feed, cattle income, etc.), credit usage and financial status of cattle breeding enterprises. Within the scope of the research, 169 enterprises were determined from 27 villages that showed intensive cattle breeding activity and the determined enterprises were examined with the stratified sampling method (5-10, 11-30, 31-227). Interviews were conducted in 2024 with a face-to-face survey method. The average age of the enterprise owners is 49 and their professional experience is approximately 26 years. Their annual average agricultural income is 307,156 TL and the majority are primary and secondary school graduates. Most of the breeders do cattle breeding as a father's profession or to contribute to their livelihood. 98% of the enterprises have a closed barn system. 65% of the enterprises have land assets and use an average of 21 decares of land for forage crop production. Intensive livestock farming is preferred as a production model. 88% of the villages have pastures that are common property of the village. It has been determined that price fluctuations are the most affected problems in cattle farming enterprises, and inflation affects breeders the most in feed prices. Only 12% of the enterprises find their equity capital sufficient; the vast majority resort to bank loans or loans from friends and family. Although credit use is common in cattle farming, breeders mostly complain about interest rates and procedures in credit use. Credit use is mostly preferred to cover feed, medicine and veterinary expenses. Insurance usage rates are also quite low; the majority of breeders who prefer to have insurance do so because the bank requires it. This data shows that although breeders have access to financial instruments, they have difficulty using these instruments consciously, in a planned and effective manner. The traditional investment approach, low insurance awareness and deficiencies in equity planning clearly reveal the need to increase the level of financial literacy.