THE EFFECT OF AGRICULTURE LOANS ON FARMERS LIFE STANDARD IN DISTRICT DERA ISMAIL KHAN

Muhammad Salman; Bakhtiar Khan Khattak; Asfand Yar

Muhammad Salman Department of Business Administration, Gomal University, Dera Ismail Khan
Bakhtiar Khan Khattak Department of Business Administration, Gomal University, Dera Ismail Khan
Asfand Yar Department of Business Administration, Gomal University, Dera Ismail Khan

Keywords: Short Term Loans, Medium Term Loans, Long Term Loans & farmers life standard

Abstract

In Pakistan, especially district Dera Ismail Khan different financial institutions are extended agriculture loans to farmers for agriculture development. Farmers in district Dera Ismail khan are mostly living below the line of poverty. These farmers cannot fulfill all agriculture requirement from limited sources. The aim of the study was to show the effect of agriculture loans on farmers life standard in district Dera Ismail khan. The primary data collected through questionnaire/semi structure interview and SPSS software was used to analyzed the collected data. The total sample size were 270 farmers. The analysis was done with the help of correlation, regression, t-test and one way ANOVA. The correlation show the positive association between short term loans, medium term loans, long term loans with farmers life standard. In correlation highest positive association between short term loans and farmers life standard their value was r = .463. The regression analysis show the change in dependent variable with the effect of independent variables. The R2 .336 of farmers life standard, which show all three predictors explaining 34% variation in farmers life standard. t-test and one way ANOVA show that there was positive impact of demographic variables on main variables.