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The issue of productivity in agriculture production have been widely analyzed across different countries all over the world. There are many studies, both in micro and macro level, that investigate the effects of various factors such as the education of the farmer, size of the farms, number of the farms, access to credits, use of government subsidies, cooperative membership on the farm productivity. Nevertheless, among all determinants access to credit play an important role and has significant impact on increasing agricultural productivity. Because, farmers who face binding capital constraints would tend to apply inputs below required level in their production activities compared to those not constrained. Improved access to credit may facilitate optimal use of inputs in production activities and has a major impact on farm productivity. Therefore, credit allows farmers to satisfy their cash needs and consumption requirements induced by the agricultural production cycle such as cultivation, irrigation, seeding, harvesting

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