Abstract

• The aim of the study is to analyze the determinants of the effect of credit accessibility on farm performance of farmers in Pauk Myine Village, Myittha Township. Simple Random sampling method was used to collect data from the farmers of Pauk Myiune Viilage. Primary data was collected from 223 farmers who borrowed from financial institutions. And the data were analyzed through descriptive statistics, reliability analysis and multiple regression analysis. The Trade-off Theory, Pecking Order Theory and Resource-Based Theory were used to obtain the objectives of the study. The result indicates that affordable interest rate, collateral requirement and availability of lending institutions have a significant positive effect on farm performance. Appropriate loan tenure and loan sufficiency have negative relationship on farm performance. The multiple regression analysis shows that affordable interest rate, collateral requirement and availability of lending institutions are significantly associated with farm performance. But Appropriate loan tenure and loan sufficiency are not significantly associated with farm performance. According to this study, if the Myanmar Agricultural Development Bank, Co-operative Banks and Microfinance Institutions in Myanmar should provide loans to farmers at a low interest rate, increase the loan repayment period. If they can lend adequate amount of money, the farming costs for farmers will be sufficient and the role of agriculture will be improved.