Evaluating the Effectiveness of the Provincial Supporting Funds for Development in Agriculture Sector (SFDA): Evidence from North Khorasan Province

Document Type : Original Article

Author

Assistance Professor of Agricultural Economics, Agricultural Planning, Economics and Rural Development Research Institute (APERDRI), Tehran, Iran.

Abstract

Regarding to the undeniable importance of the effectiveness of the provincial supporting funds for development in agriculture (SFDA) in rural and agricultural development, present study aimed at this importance with the case study of North Khorasan province's SFDA. For this purpose in order to data gathering, designed questionnaires were distributed among whole SFDA members and experts in private (rural) and public sector of each agricultural sub-sectors of North Khorasan province (N=66). Also, the Delphi technique, structural equation modeling (SEM) and Analytical Hierarchy Process (AHP) were applied for data analyzing. Results indicated that the farming and horticulture subsectors (20.17%) and aquaculture (0.18%) have the most and least share in capital and dedicated loans of SFDA, respectively. In addition, findings of Delphi showed that there are 31 sub-criteria in 4 groups for evaluating the effectiveness of SFDA activities which they include economic, social, production and training-skill. Results of SEM indicated that assessed criteria and sub-criteria are statistically significant. Results of evaluating and ranking of SFDA effectiveness by AHP indicated that SFDA effectiveness in “economic” activities is appropriate, in “social” activities is medium, in “production” and “training-skill” activities isn't appropriate. Also, between economic sub-criteria "lending inexpensive loans", between social sub-criteria "increasing producers bargaining with banks and financial and credit institutions", between production sub-criteria "providing production inputs on time" and finally between training-skill sub-criteria "fixing and developing previous occupations by training", have the most priority of effectiveness.

Keywords


  1. Abdulai, A. and Tewari, D.D. (2016). Efficiency of microfinance institutions in Sub–Saharan Africa: A stochastic frontier approach. Ghana Journal of Development Studies, 13(2): 117-139.
  2. Abtahi, S.H. and Kazemi, B. (2015). Productivity (basics, principles, methods of increase and measurement). Tehran: Fouzhan publication. (Persian)
  3. Ahmadpour, A., Abdi Tarkami, M. and Soltani, Sh. (2014). Factors affecting the rural women micro credit program success in Ghaem-shahr. Co-operation and Agriculture, 3(12): 23-45. (Persian)
  4. Attipoe, S.G., Jianmin, C. and Opoku-Kwanowaa, Y. (2020). Evaluating the impact of rural finance on Cocoa farmers productivity: A case study of Bodi district in Ghana. Asian Journal of Advances in Agricultural Research, 12(4): 36-45.
  5. Bailey, C. (2016). The productivity project: Accomplishing more by managing your time, attention, and energy. New York: Crown Business Publishing.
  6. Blanco, M., Ferasso, M. and Bares, L. (2021). The regional efficiency in the use of European agricultural funds in Spain: Growth and employment analyses. Agronomy, 11(6): 1109.
  7. Central bank of Iran (CBI) (2018). Economic time series database. Available at: https://tsd.cbi.ir/Display/Content.aspx. (Persian)
  8. Central bank of Iran (CBI) (2020). Economic time series database. Available at: https://tsd.cbi.ir/Display/Content.aspx. (Persian)
  9. Davari, A. and Rezazadeh, A. (2013). Structural equation modeling using PLS software. Tehran: Jahade Daneshgahi. (Persian)
  10. Ghadiry Masom, M. and Ahmadi, A. (2016). The factors influencing success of micro-credit funds in the economic empowerment of rural women, Firoozkooh county. Human Geography Research Quarterly, 47(4): 759-772. (Persian)
  11. Ghorbani, M. and Nemati, A. (2015). Agriculture sector finance (principles and basics). Mashhad: Ferdowsi University Publications. (Persian)
  12. Hoseini, S.S. and Bakhshayesh. M. (2014). Evaluation investment development funds loans in agricultural sector of Iran in terms of borrowing transaction cost. Iranian Journal of Agricultural Economics and Development Research, 45(2): 207-215. (Persian)
  13. Jafarzadeh, H., Rashidpour, L. and Rasouli Azar, S. (2018). Studying on effects of agricultural support funds on agricultural development in the West Azerbaijan province. Rural Development Strategies, 5(1): 121-135. (Persian)
  14. Loo, R. (2002). The Delphi method: A powerful tool for strategica management. Policing An International Journal of Police Strategies & Management, 25(4): 762-769.
  15. Mekonnen, T. (2017). Financing rural households and its impact: Evidence from randomized field experiment data, MERIT Working Papers 2017-009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  16. Meutia, I. and Adam, M. (2019). Effectiveness financing in agriculture sector: A comparative study between conventional and Islamic Bank.International Journal of Economics and Financial Issues, 9(1): 23-30.
  17. (2020). North Khorasan Agriculture - Jahad. Available at: http://nkj.ir. (Persian)
  18. Nouri ZamanAbadi, S.H., Amini, A. and Rahimi, H. (2017). Evaluate the relationship between sustainable agriculture and rural sustainable development (Case study: Fasa county rural areas). Journal of Rural Research, 7(4): 688-703. (Persian)
  19. Saaty, T.L. (1994). Fundamental of decision making and priority theory with the analytic hierarchy process. Pennsylvania: RWS Publications.
  20. (2019). Statistical Center of Iran. Available at: https://www.amar.org.ir/. (Persian)
  21. (2020). Supporting Fund on Development of Agriculture. Available at: http://sfda.nkj.ir/index.php. (Persian)
  22. Zarafshani, K., Alibaygi, A.H. and Faghiri, M. (2012). Rating micro credit funds based on rural women’s ability in Kermanshah. Women in Development and Politics, 10(1): 105-124. (Persian)