Assessment of the Impacts of Finance on the Rainfed Agricultural Sector Function, in Gedarif State (1992-2013

Abstract

This study was conducted in rainfed agriculture sector finance in Gedarif state during period of (1992-2013). The main objective of the study is to generate assessments for rainfed agriculture sector financing function, to evaluate the financing policy, and to determine the optimal useful financing method. The study depended mainly on secondary data which were collected from the Central Bank of Sudan – Gedarif Branch, ministry of agriculture, and the Central Bureau of Statistic. Regression analysis technique was used so as to attain the stated objectives. The results of the selected multiple regression model revealed that one unit increase in capital cost, Consumer Price Index, and Production will increase the Financing volume by (3.92), (691.1), and (13.499) respectively, it was also found to be highly significant with positive signs. This indicates the importance of crops’ prices trends, rates of financing institutions’ profitability, and production size change in the financing volume determination.

KEY WORDS: LOANS, CROPS, BANKS, PRODUCTION