The evaluation methods of agricultural credit demands in Turkish agricultural credit cooperatives (Tarim Kredi Kooperatifleri)

The agricultural sector is always faced with capital distress to supply main needs and obtain input for other sectors. Because of this, agricultural cooperatives are established both in obtaining input for agricultural production and an orginised credit supply in partnership with farmers. The largest population of the farmer structure in Turkey has been Tarım Kredi Kooperatifleri.The purpose of this research is to evaluate the performance of the criteria and methods used by Tarım Kredi Kooperatifleri even they are achieving accurate results or not in the evaluation stage of applications by the farmers. In this study, the finance agricultural methods are mentioned which arise in the lack of capital stock to meet the needs of the foreign funds. Within scope of Basel system, the examples of risk valuation methods and studies used in Turkey and the world were examined. In the light of the data obtained from this study, it has been ascertained that the link between the evaluation methods of credit applications used by Turkish Agricultural Credit Cooperatives and the cases of default is weak; thus, relevant suggestions in order to enhance the system have been made. Key words: Agricultural Credit, Finance of Agriculture, Agricultural Credit Cooperatives, Basel, Risk Management, Score card.