Factors Affecting Debt Payment Ability of Farmers Participating in the Debt Suspension Project (COVID-19 Debt Suspension) of Bank for Agriculture and Agricultural Cooperatives, Lampang Province

Abstract

The study of factors affecting the debt repayment ability of farmers participating in the debt repayment suspension project (COVID-19 debt suspension), Bank for Agriculture and Agricultural Cooperatives, Lampang Province, aimed to study the factors influencing the debt repayment ability on time by collecting primary data from 400 customers of the Bank for Agriculture and Agricultural Cooperatives, surveying 200 customers who were able to repay their debts and 200 customers who were unable to repay their debts. This study uses a choice-based sampling approach by using the disproportionate stratified random sampling technique. The sample is divided into two equal groups to help estimate the coefficients within the logit model for precision. Then the values were estimated using the Logit model and read the results from Marginal Effects. The results of the factors influencing the ability to repay debts on time, it was found that females were more likely to repay their debts on time than males. If the respondents had Mixed crop and animal husbandry production type and having at least 1 plot of real estate as collateral for the loan will increase the chance of being able to repay the debt on time. And if farmers have debts from many institutions, there is a chance that they will not be able to repay the loan on time according to the contract period and will have a problem with overdue debt.