An Analysis of Effective Factors on Diversion of Agricultural Credits in Rural Areas: A Case Study of Ghani Bigloo Subdistrict of Zanjan County

Today, farmers’ access to formal credits is considered as a means of agricultural and rural development. However, a number of farmers spend their received credits on non-agricultural purposes. The question is “what is the relationship of farmers’ individual, economic and land characteristics and their received credit features with the amount of credits spent on agricultural purposes?”, and also, “according to the farmers, which factors cause credit diversions from objectives of Agriculture sector?”. This study with a statistical society of 614 farmers who received the agricultural credits in Ghani Bigloo district tries to answer these issues. Study results indicate that only %16 of the farmers spend the credits completely on the agricultural purposes; there is a significant relation of the credit spending in the Agriculture sector with the variables of the farmers’ individual, economic and land characteristics and the credit features; and according to the farmers, lack of sustainable incomes is one of the main factors resulting in agricultural credit diversions.