Financial literacy for farmers – the case of vineyard farmers in Kosovo

Abstract

Summary One of the key factors influencing agricultural development and farm performance is access to finance. There are several factors that influence access to finance, including financial management capacity, which is linked to financial literacy. The paper analyzes the factors which determine farmers’ financial management behavior, in the case of Kosovo, based on a structured farm survey focusing on the vineyard sector. The findings suggest that half of the interviewed farmers did not keep records regarding costs and incomes. The likelihood to keep financial records is linked to several household and farm attributes. Market-oriented farmers who had contracts were more likely to keep financial records than those who did not. Policymakers through public advisory services as well as financial institutions should address the need to improve financial literacy among farmers.