Factors Affecting Farmers’ Decision to Enter Agricultural Cooperatives Using Random Utility Model in the South Eastern Anatolian Region of Turkey

Abstract

Farmers’ decision and perceptions to be a member of agricultural cooperatives in the South Eastern Anatolian Region were investigated. Factors affecting the probability of joining the agricultural cooperatives were determined using binary logit model. The model released that most of variables such as education, high communication, log of gross income, farm size, medium and high technology variables play important roles in determining the probability of entrance. Small farmers are likely expected to join the agricultural cooperatives than the wealthier farmers are. Small farmers may wish to benefit cash at hand, input subsidies, and services provided by the agricultural cooperatives since the risks associated with intensive high-returning crops are high. Some important factors playing pole role in abstention of farmers towards agricultural cooperatives are gross income and some social status variables. In addition, conservative or orthodox farmers are less likely to join agricultural cooperatives than moderate farmers are. We also found that the direct government farm credit programs mainly should be objected to providing farmers to better access to capital markets and creating the opportunity to use with allocation of capital inputs via using modern technology.

Keywords

• cooperatives
• participation
• random utility
• logit