Factors Affecting the Occurrence of Household Debt: A Case Study of Farmers in Nakhon Phanom Province

Abstract

The objectives of this study were: 1) to study the factors causing household debt of farmers in Nakhon Phanom province, and 2) to prepare policy recommendations as a guideline to alleviate household debt burdens among farmers in Nakhon Phanom province. The study utilized a mixed method research, with quantitative research involving a convenience sample of 385 persons. Statistical analyses included frequency, mean, percentage, and standard deviation. Qualitative research sections included in-depth interviews with key informants consisting of eight farmers and government officials. The quantitative study found that the majority of the subjects were female, aged between 36 - 60 years old. Most of them have 3 - 4 household members, with the largest group of farmers having a career period of 21 to 30 years and an average monthly income of 5,000 to 10,000 baht. Regarding debt burden, 89.6% of farmers' current liabilities were from debts borrowed from specialized financial institutions such as Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives. The factors contributing to household debt include economic factors at a high level of consensus, and there are 4 aspects with low levels of consensus: social factors, behavioral factors, geographical and environmental factors, and personal and family factors, respectively. Qualitative research findings indicate that significant factors leading to household debt include economic factors, such as borrowing money for agricultural production needs. Social factors involve decisions to purchase products based on trends to gain social acceptance. Personal and family factors include the responsibility for and care of numerous household members, such as tuition and educational expenses. Approaches to solving household debt issues include policies to enhance occupational knowledge and skills, financial management policies, welfare policies, government aid measures, and sufficiency economy policies.