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Factors Associated With Farm Financial Failure In The Northern Springbok Flats

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  • de Jager, Fritz
  • Swanepoel, Vernon

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.

Suggested Citation

  • de Jager, Fritz & Swanepoel, Vernon, 1994. "Factors Associated With Farm Financial Failure In The Northern Springbok Flats," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(4), December.
    • Handle: RePEc:ags:agreko:267728
    DOI: 10.22004/ag.econ.267728
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    References listed on IDEAS

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    Cited by:

    1. Lishman, J.-L. & Nieuwoudt, W. Lieb, 2003. "An analysis of factors contributing to the use of an income equalisation deposit scheme by commercial farmers in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 42(4), pages 1-28, December.
    2. Groenewald, J. A., 1996. "Transformation: The Challenge To Commercial Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 35(4), December.
    3. Mário Santiago Céu & Raquel Medeiros Gaspar, 2022. "Vegetative cycle and bankruptcy predictors of agricultural firms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(12), pages 445-454.
    4. Swanepoel, D. S., 1996. "Causes Of Maize Farm Bankruptcy In South Africa: 1970- 1994," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 35(4), December.

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