International Journal of Research Publication and Reviews, Vol 3, no 4, pp 886-890, April 2022

International Journal of Research Publication and Reviews

Journal homepage: www.ijrpr.com ISSN 2582-7421

A Study on Farmer Satisfaction With Respect To Agricultural Finance

by Co-Operative Bank

Himani Patel*, Dr. Taral Patel**

*Student, B.V. Patel Institute of Management, Uka Tarsadia University, Mahuva, Bardoli, Gujarat, India
**Assistant Professor, B.V. Patel Institute of Management, Uka Tarsadia University, Mahuva, Bardoli, Gujarat, India

ABSTRACT

This paper examines the satisfaction to agriculture finance by Co-operative bank. Most of the times farmers suffer from the problem of inadequate financial state.
Technical inputs can be purchased and used by farmers only if sufficient money (funds) is available with farmers. In this study objectives are to study the farmers
satisfaction about agriculture finance provide by co-operative bank, to know economic & financial and agri production capacity of farmer at Tapi district, to study
the various factors affecting agriculture finance provide by co-operative bank to farmer. The entire project of researcher is based on questionnaire and the analysis
show the project is of descriptive design and exploratory in nature. In this study the primary data were generated through questionnaire. For this study, the sample
size taken for the survey is of 126 people from Tapi district. The sampling technique used in this study is non-probability convenience sampling. The majority of
the farmers in their family earning member is 1 which constituted highest 55. The majority of farmers purchase of farming machinery and equipment which is
highest constituted 39.7. The majority of farmers do investment in an irrigation which is highest constituted 41.3. Government makes attempts through their
various schemes of agriculture finance with the aim of helping and motivate farmers for the growth. This attempt is a major motivation to farmers to make the
growth in agriculture and scheme of finance is a continuous and make effort of the government to encourage farmers.

Keywords: Agriculture Finance, Co-Operative Bank, analysis, Study

INTRODUCTION

Finance in agriculture is as important as development of technologies. Technical inputs can be purchased and used by farmers only if sufficient money
(funds) is available with farmers. Most of the times farmers suffer from the problem of inadequate financial state. This situation leads to borrowing from
an easy and comfortable source. Professional money lenders were the only source of credit to agriculture till 1935. They used to charge unduly exorbitant
rates of interest and follow serious practices while giving loans and recovering them. As a result, farmers were heavily burdened with debts and many of
them are left with perpetuated debts. With the passing of Reserve Bank of India Act 1934, District Central co-operative Bank and Land Development
Banks, agricultural credit. The co-operative banks advance credit mostly to agriculture. The procedures and amount of loans for various purposes have
been standardized. Among the various purposes “Crop loan” (short-term loan) has the major share. In addition, farmers get loans for the purchase of
electric motor with pump, tractor and other machinery, digging wells or boring wells, installation of pipe lines, drip irrigation, planting fruit orchards,
purchase of dairy animals and for many other allied enterprises.

LITERATURE REVIEW

Siva Reddy (2020) conducted study on “A study on farmers awareness on agriculture loans in rural areas with reference to Rayalaseema region, Andhra
Pradesh” This paper looks at the worries and issues in Agriculture loans in rural areas Rayalaseema region in Andhra Pradesh. So as toot adequate
administration of Andhra Pradesh is proposed to give Rs. 69548.83 Cores towards Agriculture Credit for the year 2015-16. The Government of Andhra
Pradesh has structured a system to change the Agriculture and Allied divisions in Partnership with International Crops Research Institute (ICRISAT).
This methodology will be operational zed in a staged way setting the gauges for another improvement worldview in order with the change situations to
empower. The objectives to study the extent of awareness among the farmers pertain to settlement of agriculture loans and to analyze the influence of
education of farmers on awareness of agriculture loans.

N. A. Kavitha (2016) conducted study on “A Study of Customer Satisfaction and Perception towards the Services of Co-Operative Banks” This paper
attempts to study the cooperative banks customer perception of service quality in the cooperative banks sector. The objectives are to understand the
customer’s satisfaction and perception towards the services of co-operative sector banks, to get an overview about the services and performance of co-
operative banks. Responses of 120 customers were randomly selected for knowing their experience with the bank. The analyzed showed that and the
customers of bank were highly satisfied with their services and attitude of the employees but they express their dissatisfaction towards the less
 International Journal of Research Publication and Reviews, Vol 3, no 4, pp 886-890, April 2022 887

technological advancements.
Deepa S. Raj and Edwin Prabu (2016) conducted study on “Agricultural Credit by Co-operatives in Tamil Nadu” This paper examines the impact
and implications of Tamil Nadu’s agricultural loan waiver scheme of 2016, based on data collected through a field survey of seven districts of the state
as well as farm loan transactions data obtained from select primary agricultural co-operative credit societies. The state government’s loan waiver
scheme was applicable only to agricultural loans availed by small and marginal farmers, while other farmers with land holdings of above 5 acres were
not eligible for the waiver benefit.
Anil Kumar Soni and Dr. Harjinder Singh (2012) conducted study on “Role of co-operative bank in agricultural credit based on Chhattisgarh” The
objectives is to study the performance of cooperative banking in respect of agricultural credit and rural development, to study the role of cooperative
bank in agricultural credit, to study the agricultural credit structure of the cooperative bank. The present study is based on the secondary data published
by office of the Registrar of Cooperative societies, Chhattisgarh, Raipur. The required data and literature for the study purpose were collected from the
number of reference books, Journals and Internet. The co-operative banks in India supporting development of agriculture and rural areas.
Heiko and Cihak (2007) conducted study on “Co-operative Banks and Financial Stability” The finding of their study on co-operative banks and their
financial stability. The study was based on individual bank data drawn from the bank scope database for 29 major advanced economies and emerging
markets that were members of the Organization for Economic Co-operation and Development (OCED). They found that co-operative banks in
advanced economies and emerging markets had higher scores than commercial banks, suggesting that co-operative banks were more stable.

OBJECTIVE

 To study the farmers satisfaction about agriculture finance provide by co-operative bank
 To know economic & financial and agri production capacity of farmer at Tapi district
 To study the various factors affecting agriculture finance provide by co-operative bank to farmer.

RESEARCH METHODOLOGY

The research is an exploratory followed by descriptive one because the entire project is based on questionnaire and analysis which is of exploratory
nature followed by the detailed description and analysis show the project is of descriptive design also. In this research primary data for the present
study. Primary data were generated through questionnaire for this study. A well structured questionnaire was prepare and distributed to collect
information. The study has been conducted in the Tapi district were the population for the research was general people. For this study, the sample size
taken for the survey is of 126 people from Tapi district. The sampling technique used in this study is non-probability convenience sampling. In such a
techniques research seeks his or her own convenience to reach the ultimate target group. Statistical techniques like simple percentage analysis,
frequency distribution table, cross-tabulation between different variable, T-test, various chart by MS Excel and SPSS has been used for data analysis.

ANALYSIS
Table: 1
Frequency Percentage
Male 87 69.0
Gender
Female 39 31.0
18 to 25 years 28 22.2
26 to 40 years 51 40.5
Age
41 to 50 years 39 31.0
51 to 60 years 8 6.3
Less than 10th 36 28.6
Up to 12th 45 35.7
Education
Graduate 38 30.2
Post Graduate 7 5.6
One 70 55.6
Number of earning members Two 33 26.2
Three & above 23 18.3

The study of farmer satisfaction about agriculture finance found that 69% farmers were male and 31% farmers were female respondents. Majority of
the farmers age group has between 26-40 years which considered highest 40.5% of sample population. 126 of respondents were represent done with
graduate which constituted highest 30.2% of sample population. The majority of the farmers in their family earning member is 1 which constituted
highest 55.6% of sample population.
 International Journal of Research Publication and Reviews, Vol 3, no 4, pp 886-890, April 2022 888

Table: 2

To know economic, financial and agri production capacity of farmer

Particular Frequency Percent
Individual income of family
Up to Rs.1,00,000 23 18.3
Rs.1,00,001 – Rs.3,00,000 55 43.7
Rs.3,00,001 – Rs.5,00,000 34 27.0
Above Rs.5,00,000 14 11.1
For how many years you have engaged in farming?
1-5 years 35 27.8
6-10 years 49 38.9
11-15 years 28 22.2
More than 20 years 14 11.1
How much land do you have to cultivate?
1-5 acres 36 28.6
6-10 acres 40 31.7
11-15 years 34 27.0
More than 16 acres 16 12.7
How much lands do you production in a year?
1-5 acres 37 29.4
6-10 acres 50 39.7
11-15 years 27 21.4
More than 16 acres 12 9.5
How much land is vacant during the whole year without cultivating?
1-5 acres 99 78.6
6-10 acres 16 12.7
11-15 years 9 7.1
More than 16 acres 2 1.6
Which season you prefer for your agriculture production?
Winter 69 54.8
Summer 13 10.3
Monsoon 44 34.9
How do you get information about agricultural finance loan of co-operative bank?
Advertisement 54 42.9
Relatives 23 18.3
Friends 24 19.0
Banks 20 15.9
Others 5 4.0
What is your opinion about interest rate charged by the bank on agricultural finance loan?
High 75 59.5
Low 21 16.7
Medium 30 23.8
What’s the first investment that you would like to make in agriculture?
A tractor 26 20.6
An irrigation 52 41.3
A storage facility 24 19.0
Improved seeds, pesticides etc. 24 19.0

The total 126 respondents in that the highest income of family is between Rs. 1,00,000-Rs. 3,00,000 that is 43.7% . The majority of the farmers do
farming since 6-10 years which constitute highest 38.9% of sample population.The126 farmers respondents farmers cultivate the land in 6-10 acres
which is highest constitute of 31.7%. The majority of the farmers do production since 6-10 years which constitute highest 39.7% of sample population.
126 of respondent’s farmers land is vacant between 1-5 acres which constituted highest 78.6% of sample population. The farmers most prefer the
season for production is winter which is constituted 54.8%. The farmers get more information about loan through advertisement which is highest
constituted 42.9%.The highest interest rate on agriculture finance which is constituted 59.5%. The majority of farmers purchase of farming machinery
 International Journal of Research Publication and Reviews, Vol 3, no 4, pp 886-890, April 2022 889

and equipment which is highest constituted 39.7%.The majority of farmers do investment in an irrigation which is highest constituted 41.3%.

Table : 3
The satisfaction towards agricultural finance by co-operative bank

Association between fixed interest rate and preference of agriculture finance services which constituted highest value 0.076 which rate of interest is
reasonable and above 0.05. Association between production in a year and satisfaction towards agricultural finance majority in floating interest rate
which constituted highest value 0.611 and above 0.05.

Standard Pearson
Particular Mean Result
deviation Chi-Square
Represent association between income of family and satisfaction in agriculture finance
Are you satisfied with the water distribution with using the
3.22 1.414 0.015 H0 is rejected
irrigation service?
Do you satisfied with the agriculture Equipments provided
3.27 1.216 0.028 H0 is rejected
by the co-operative bank?
Do you satisfied with agriculture Fertilizers services
3.14 1.198 0.641 H0 is accepted
provided by co-operative bank?
Co-operative bank provide Fixed interest rate to you to avail
2.92 1.204 0.076 H0 is accepted
agricultural finance?
Co-operative bank provide Floating interest rate to you to
2.98 1.226 0.010 H0 is rejected
avail agricultural finance?
Are you satisfied in the Government policies of Agricultural
3.06 1.225 0.001 H0 is rejected
finance?
Are you satisfied by the Crop loan, Tractor loan, Irrigation
loan, Crop insurance, Dairy loan, Farmer accidental 3.32 1.354 0.223 H0 is accepted
insurance, etc. services provided by co-operative bank?
Co-operative bank provides credit to farmers in minimum
2.96 1.261 0.016 H0 is rejected
rate of interest which is affordable?
What is the opinion about customer service in co-operative
3.02 1.271 0.044 H0 is rejected
bank?
Represent association between engaged in farming and satisfaction agricultural finance

Are you satisfied with the water distribution with using the
3.22 1.414 0.246 H0 is accepted
irrigation service?
Do you satisfied with the agriculture Equipments provided
3.27 1.216 0.321 H0 is accepted
by the co-operative bank?
Do you satisfied with agriculture Fertilizers services
3.14 1.198 0.560 H0 is accepted
provided by co-operative bank?
Co-operative bank provide Fixed interest rate to you to avail
2.92 1.204 0.234 H0 is accepted
agricultural finance?
Co-operative bank provide Floating interest rate to you to
2.98 1.226 0.611 H0 is accepted
avail agricultural finance?
Are you satisfied in the Government policies of Agricultural
3.06 1.225 0.548 H0 is accepted
finance?
Are you satisfied by the Crop loan, Tractor loan, Irrigation
loan, Crop insurance, Dairy loan, Farmer accidental 3.32 1.354 0.348 H0 is accepted
insurance, etc. services provided by co-operative bank?
Co-operative bank provides credit to farmers in minimum
2.96 1.261 0.661 H0 is accepted
rate of interest which is affordable?
What is the opinion about customer service in co-operative
3.02 1.271 0.153 H0 is accepted
bank?
 International Journal of Research Publication and Reviews, Vol 3, no 4, pp 886-890, April 2022 890

RESULT

The majority of the farmers in their family earning member is 1 which constituted highest 55. The total 126 respondents in that the highest income of
family is between Rs. The majority of the farmers do farming since 6-10 years which constitute highest 38. The126 farmers respondents farmers
cultivate the land in 6-10 acres which is highest constitute of 31.7%. The majority of the farmers do production since 6-10 years which constitute highest
39. 126 of respondent's farmers land is vacant between 1-5 acres which constituted highest 78. The majority of farmers purchase of farming machinery
and equipment which is highest constituted 39.7%. The majority of farmers do investment in an irrigation which is highest constituted 41.3%.
Association between fixed interest rate and preference of agriculture finance services which constituted highest value 0.076 Association between
production in a year and satisfaction towards agricultural finance majority in floating interest rate which constituted highest value 0.611.

CONCLUSION

The objective of this study is that a study of agricultural finance with respect to farmers in co-operative bank included that the government through its
various schemes of finance to agriculture aim at helping farmers and by helping it attempts to promote the growth and productivity of agriculture. This
enhancing attempt is a major encouragement to farmers to sustain the growth in agriculture. The scheme of finance explained is a continuous and
sustained effort of the government to encourage farmers.

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