FACTORS ASSOCIATED WITH FARM FINANCIAL FAILURE IN THE NORTHERN SPRINGBOK FLATS

Fritz de Jager and Vernon Swanepoel

Agrekon, 1994, vol. 33, issue 4

Abstract: A logit model was used to distinguish between producers in the Northern Springbok Flats who had failed financially versus those who were financially successful, based on data from a survey which was conducted during 1990. Producers who had failed financially by April 1994 spent more on directly allocatable costs, had higher levels of carry-over debt and arrears instalments on long-term loans, had less collateral in the form of land, had lower farm gross incomes in relation to their long-term debt and bought land during the 1980's. Results reveal a need for improved financial and risk management, better consideration of implications of state intervention, and the use of solvency as well as pay-back measures when assessing credit worthiness.

Keywords: Agricultural and Food Policy; Agricultural Finance (search for similar items in EconPapers)
Date: 1994
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267728

DOI: 10.22004/ag.econ.267728

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