THE EFFECT OF DEBT BURDEN, INTEREST RATES AND INFLATION ON THE SURVIVAL OF FARMING ENTERPRISES: A CASE STUDY IN THE WESTERN TRANSVAAL AND THE NORTH-WESTERN BUSHVELD

J. van Zyl, A. van der Vyver and C. W. Mostert

Agrekon, 1987, vol. 26, issue 01

Abstract: In this study the effect of varying yield levels (drought), structural input price inflation, interest rates and initial solvency position (as influenced by debt burden) on typical farming enterprises in the Western Transvaal and the North-western Transvaal Bushveld is determined. Initial solvency situation, interest rates and structural inflation have a significant effect on financial results of farming enterprises. Analysis of variance shows that these three factors and their effects are interdependent. The effect and influence of each on survival are therefore influenced by the levels of the other factors. Consequently all three factors must be influenced simultaneously in order to obtain positive results with regard to the survival of farming enterprises in the Western Transvaal and the North-western Transvaal Bushveld.

Keywords: Agricultural Finance; Financial Economics (search for similar items in EconPapers)
Date: 1987
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/267139/files/agrekon-26-01-002.pdf (application/pdf)
https://ageconsearch.umn.edu/record/267139/files/a ... 2.pdf?subformat=pdfa (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267139

DOI: 10.22004/ag.econ.267139

Access Statistics for this article

More articles in Agrekon from Agricultural Economics Association of South Africa (AEASA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().