Agricultural credit policies in Turkey, practices

Agricultural sector, which has an important place in the world and Turkey economy, is the main sector that solutions for its finance. The farmers have to obtain their needs for working capital and investment by means of loans and non-organized supplied from organized credit sources. Because of the main problem of agriculture sector consist of the financial problem, service mentalite which provide service to this sector is important for productor in Turkey. When agricultural institutions provide the capital that they need from organized credit resources in developed countries, they prefer non-organized credit resources such as relatives, friends, and merchants in developing countries like Turkey. Such as credits which fill the space of organized credits are generally short-term, highly interested credits and they have very difficult requirements. That is why that credits procedures should be very simple and understandable to gain the lowly educated agricultural sector to the economy. By lowering the interest rates, producers should be protected from moneylenders and opportunists who give money with very high interest. It should be prevented to producers in a bad situation by demanding suitable securities for the credits that they may need. It should be provided that credit organizations move organized, credit products should be arrived on time to areas where they can be needed and controlled whether those credits have been used appropriately to their aim or not.