Effective factors on agricultural credit demand in Sistan

Capital shortage is one of the most important restricting factors for activities and innovations in agriculture. The insufficiency in deprived areas such as Sistan and Baloochestan is more intense. Therefore, financial contribution to these farmers is necessary. In this study, effective factors on Sistan credit demand have been investigated by interviewing with 120 farmers.
The results showed that land and labor force are plenty but, capital is scarce. Besides, results showed that credit demand quantity has a direct relationship with product prices. For one percent increase in product price, demand for credit increases about 1.859 percent, but increase in interest rate has a little effect on credit demand and the ratio of demand elasticity to interest rate is only about 0.18 percent.