Debt Analysis of Agricultural Cooperatives’ Members in the Central of Thailand.

Abstract

The goals of this study are: 1. To investigate the debt situation of agricultural cooperatives’ members in the central part of Thailand. And, 2. To investigate the variables that influence the formation of debt among agricultural cooperatives’ members in the central area. Secondary data from the National Statistical Office and the Cooperative Auditing Department were combined with primary data from 414 members collected through a questionnaire.
From the results of the study, agricultural cooperatives’ members in the central part of Thailand, most of them have an average income per household of less than 10,000 baht, average expenditure per household of less than 10,000 baht, they have become members of a cooperative for more than 5 – 10 years. The objectives of membership are to use credit services, indebted to the cooperative 10,001-50,000 baht, the debt duration is more than 1 year - 5 years and the main reason for borrowing money is for use in agriculture.
The data were evaluated with the Ordered Probit Model. The results of the study into the factors that influence the debt burden of agricultural cooperatives’ members in the central part of Thailand revealed two personal factors: education level and average monthly income. Five variables in value/attitude factors are the ability of money management, fanatical devotion to entertainment, religious
devotion, high-income earners have more savings in the bank, and the high cost of living has an impact on indebtedness. Finally, three variables regarding need for consumption are disaster situations, four basic needs, and technological requirements.