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. Descriptive statistics were used to describe percentages and frequencies to identify general characteristics of farmers. The values were estimated using the Logit model and analyzed using the Marginal Effects method. The results of the study found that most customers with the highest debt repayment ability were males, aged 51-60 years, married, had a secondary education, and had more than 3 household members/household. The average household income was between 100,001 and 200,000 baht/year, had 1-3 household members with income, and engaged in agriculture by growing crops together with raising animals or mixed production. The debt burden was found to have other assets besides the BAAC. The credit limit approved between 100,001-200,000 baht. They used personal loan collateral. The purpose of the loan was for investment and most farmers had knowledge and understanding of the Covid-19 debt suspension program. In terms of 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.