Separate studies on the formation of price expectations of
future prices of agricultural commodities and the demand for loans
have been extensive. However, studies on how farmers form their
expectations on future prices of t he agricultural commodities as
their decision variable when borrowing decision is made has been
neglected. Therefore, the objective of this study is to
determine how farmers or farm-firms forms their expectations about
price at the time when borrowing decision is made. The study is
also aimed at determining other factors that influence the
demand for agricultural loans
