The Determinants of Financial Inclusion Using Alternative Ordered Discrete Choice Models: The Case of Apricot Producers in Malatya Province of Turkey

This study measures financial inclusion at an index level for 266 apricot producers in Malatya Province of Turkey, running alternative ordered discrete choice models to identify the determinants of financial inclusion. The findings reveal that farming experience and plant income boost financial inclusion since higher farming experience and income ensure stronger transactions with financial institutions and a stable cash flow. In addition, as the education level decreases, financial inclusion rises, and there is a negative relationship between engaging in non-agricultural activities and financial inclusion. Land size, animal production income, producer union membership, and agricultural courses do not affect financial inclusion levels. Although small-scale agricultural enterprises are eager to participate in the financial sector, their financing-access problems cannot be solved, and they cannot benefit from land-based creditworthiness due to their scale. The high transaction costs of financial institutions may cause difficulties, even for large-scale businesses, regarding participation in the financial sector. The Ministry of Agriculture and Forestry, commercial banks, insurance agencies, and microfinance institutions may develop targeted educational outreach programs to improve financial literacy and awareness among apricot producers.