FINAL REPORT

Loans
40% of surveyed households had taken loans for farming and 60% responded that they never
had taken loans for the following reasons:
• they are able to sustain their farming without loans
• they are willing to obtain loans to expand their farming activities but are not entitled to
because they don’thavesufficient property to mortgage
The amount of loans varied between 500,000 and 2,000,000 MNT with 3-3.5% interest rates
per month. Farmers usually get loans during spring when cultivation starts and repay after
harvest in autumn.
Cooperation among households
Survey findings show that most households do not cooperate in any sphere of agricultural
activities such as irrigation, cultivation, harvest sale or livestock herding (see Fig. 56). Those
who responded that there is some kind of cooperation, were cooperative members or shared
workload with relatives.
Households
70
60
50
40
30
20
10
0
60
59
55
53
54
4
6
5
0
0
Yes No Yes No Yes No Yes No Yes No
Cooperation in
crop farming?
Cooperation in
irrigation?
Cooperation in
preparing of
farmland?
Cooperation in
crop marketing?
Cooperation in
livestock herding?
Figure 56: Cooperation among Farmers’ Households, Khovd sum
Source: Survey results, June 2006
106