IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/9502.html
   My bibliography  Save this article

Factors affecting the loan status of sugarcane farmers using a graduated mortgage loan repayment scheme in KwaZulu-Natal

Author

Listed:
  • Mashatola, M.C.
  • Darroch, Mark A.G.

Abstract

Factors affecting whether or not 83 medium-scale sugarcane farmers using a graduated mortgage loan repayment scheme in KwaZulu-Natal were current or in arrears on loan repayments as at 31 March 2001 were analysed using a logit model. Results show that the estimated probability of a farmer in the scheme being current on loan repayments was higher for clients with higher levels of average annual farm gross turnover relative to loan size, and for clients with access to substantive off-farm income. This suggests that farm size (proxied by annual gross turnover) does matter when policymakers in South Africa consider future similar schemes designed to improve access to commercial farmland by people that previously could not buy farmland. Access to off-farm income could also be considered as a criterion in selecting potential farmers for such schemes, as it helps to provide additional liquidity to fund future operations and debt repayments.

Suggested Citation

  • Mashatola, M.C. & Darroch, Mark A.G., 2003. "Factors affecting the loan status of sugarcane farmers using a graduated mortgage loan repayment scheme in KwaZulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 42(4), pages 1-13, December.
    • Handle: RePEc:ags:agreko:9502
    DOI: 10.22004/ag.econ.9502
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/9502/files/42040353.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.9502?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. MC Lyne & MAG Darroch, 1997. "Broadening access to land markets: Financing emerging farmers in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 14(4), pages 561-568.
    2. Robert C. Vogel, 1981. "Rural Financial Market Performance: Implications of Low Delinquency Rates," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 58-65.
    3. Francois Kamajou & C. B. Baker, 1980. "Reforming Cameroon's Government Credit Program: Effects on Liquidity Management by Small Farm Borrowers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 709-718.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jorge Mota & António Carrizo Moreira & Cristóvão Brandão, 2018. "Determinants of microcredit repayment in Portugal: analysis of borrowers, loans and business projects," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 17(3), pages 141-171, November.
    2. Finnemore, G.R.L. & Darroch, Mark A.G. & Lyne, Michael C., 2004. "Loan products to manage liquidity stress when broad-based black empowerment enterprises invest in productive assets," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(4), pages 1-22, December.
    3. Ortmann, Gerald F., 2005. "Promoting the competitiveness of South African agriculture in a dynamic economic and political environment," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-35, September.
    4. Darroch, Mark A.G. & Clover, T.A., 2005. "The effects of entrepreneurial quality on the success of small, medium and micro agri-businesses in KwaZulu-Natal, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-23, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soliwoda, Michal & Kulawik, Jacek & Wieliczko, Barbara, 2018. "Financial instruments and EU community policies," International Journal of Agricultural Sciences and Technology (IJAGST), SvedbergOpen, vol. 180(3), September.
    2. R. Yabile Kinimo, 1985. "Recherche sur l'équilibre financier d'un programme de crédit agricole en Côte-d'Ivoire," Économie rurale, Programme National Persée, vol. 170(1), pages 36-38.
    3. Weber, Ron & Mußhoff, Oliver & Petrick, Martin, 2014. "How flexible repayment schedules affect credit risk in agricultural microfinance," DARE Discussion Papers 1404, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    4. Weber, Ron & Musshoff, Oliver, 2015. "Does pre-defined flexibility come with teh cost of higher credit risk? Evidence from agricultural micro lending in Madagascar," 2015 Conference, August 9-14, 2015, Milan, Italy 211905, International Association of Agricultural Economists.
    5. Müller, Kirsten & Mußhoff, Oliver & Weber, Ron, 2014. "The More the Better? How Collateral Levels Affect Credit Risk in Agricultural Microfinance," Department of Agricultural and Rural Development (DARE) Discussion Papers 260815, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    6. Imke Hering & Oliver Musshoff, 2017. "Progressive Lending in Microfinance—What about the Farmers?," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 803-828, August.
    7. Moutie Giscard & Ngouhouo Ibrahim & Kamajou François, 2015. "Effect of Financial Intermediation on Economic Growth in Cameroon," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 5(9), pages 639-649.
    8. Harris, Kim & Baker, Chester B., 1985. "Eliciting Liquidity Preferences For Cash And Intermediate Credit Reserves From Central Illinois Farmers," 1985 Regional Committee NC-161, October 9-10, 1985, St. Louis, Missouri 140934, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    9. Albert N. Honlonkou & Denis H. Acclassato & Célestin Venant C. Quenum, 2006. "DÉterminants de la Performance de Remboursement Dans Les Institutions de MicroFinance au BÉnin," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(1), pages 53-81, March.
    10. Darroch, Mark A.G. & Mashatola, M.C., 2003. "Sugarcane Growers' Perceptions Of A Graduated Mortgage Loan Repayment Scheme To Buy Farmland In Kwazulu-Natal, South Africa," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(4), pages 1-10.
    11. Weber, Ron & Mußhoff, Oliver & Petrick, Martin, 2014. "How flexible repayment schedules affect credit risk in agricultural microfinance," DARE Discussion Papers 1404, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).

    More about this item

    Keywords

    Agricultural Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:9502. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.