The Impact of Formal Agricultural Credit on Farm Productivity and Its Utilization in Khyber Pakhtunkhwa, Pakistan

Agricultural mechanization and the use of mixed inputs ensure higher productivity. In this regard, Government Pakistan has executed an approach for provision agricultural credit to smallholders improving production. However, many issues are involved in extent, utilization impacts credit. This study aims explore impact credit, its utilization, misuse factors determining extent Pakistan. A semi-structured questionnaire was developed collect data from 316 farmers Mardan District. The analyzed through statistical tools such as a paired t-test, ANOVA multiple regressions. Results showed that enhanced crops’ according percentage use, more common than proper utilization. Farmers utilized land preparation, fertilizers, seeds, pesticides daily labor. They misused healthcare, education children, domestic needs business. regression model farmers’ age, experience, farm size, income, labor ownership were determinants Policy measures should be taken stop achieve target set