Factors that Determine Farmers’ Access to Credit: Insights from Farmers in Kosovo

This study analyses the determinants of access to credit: Results from five regions of Kosovo (Prishtina, Prizreni, Peja, Gjilani, and Mitrovica). The data at the farm level will be collected between March and July 2023. A sample of 350 farms was selected for the survey using a multi-stage random sampling method. This study used a linear regression model, frequency counts, chi-square tests, and percentages to analyze the data. Access to agricultural credit is relatively low in Kosovo. The results of the study show that the interest rate is the most important factor when it comes to obtaining a loan from farmers, while land ownership has a negative association and reduces the constraints in accessing credit. The results of this study also show that institutional lenders prefer agricultural credit to educated and young farmers to allocate resources efficiently as they are more inclined to adopt new agricultural technologies to improve agricultural production.