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Causes Of Maize Farm Bankruptcy In South Africa: 1970- 1994

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  • Swanepoel, D. S.

Abstract

The nwnber of maize farms declared bankrupt in South Afiica rose sharply from 16 farms in 1970 to 205 farms in 1986 and then fluctuated around the 150 farm level in the early l 990's. Ordinary least squares regression and principal component analysis confirmed a priori expectations that maize farm bankruptcy was negatively related to the lagged real maize producer price and annual rainfall (business risk factors), but positively related to the lagged aggregate farm debt/asset ratio and lagged real interest rates ( financial risk factors).

Suggested Citation

  • 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.
    • Handle: RePEc:ags:agreko:267975
    DOI: 10.22004/ag.econ.267975
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    References listed on IDEAS

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    1. Faminow, Merle D. & Laubscher, J. M., 1991. "Empirical testing of alternative price spread models in the South African maize market," Agricultural Economics, Blackwell, vol. 6(1), pages 49-66, October.
    2. Rucker, Randal R & Alston, Lee J, 1987. "Farm Failures and Government Intervention: A Case Study of the 1930' s," American Economic Review, American Economic Association, vol. 77(4), pages 724-730, September.
    3. Stephen C. Gabriel & C. B. Baker, 1980. "Concepts of Business and Financial Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 560-564.
    4. 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.
    5. Lawrence E. Shepard & Robert A. Collins, 1982. "Why Do Farmers Fail? Farm Bankruptcies 1910–78," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 609-615.
    6. M. W. Luke Chan & Wendy D. Rotenberg, 1988. "Financial Distress in the Canadian Agricultural Sector: A Macro Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 36(3), pages 531-538, November.
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