Factores de éxito en el cumplimiento de obligaciones crediticias de pequeños agricultores de la Región de O’Higgins, Chile

In Chile, the small-scale farmer sector has more than 1.2 millions of peasants with more than 278 thousand productive farms which represent 85% of total productive farms in Chile. This sector is considered to be heterogeneous and multifunctional. As other farming sectors, small-scale farmers need smooth access to credit to support working capital and investment. However, these kinds of farmers do not meet the requirements of commercial banks due to asymmetric information. The objective of this paper is to determine farmer characteristics that affect the payment of credit obligations. This case-study analysis is based on a cross-section survey data taken of 185 small-scale farmers in O’Higgins Region in Chile, who applied for a commercial bank loan during two seasons. An ordered probit regression model is estimated. The results suggest that the variables that reduce the probability of credit repayment are total production cost and crop specialization. On the other hand, education and farm location did not present statistically significant differences.

Variant title:
Success Factors for payment of credit obligation from Small- Scale Farmer in Central Region, Chile.
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Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 0718-9141 (Other)
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Published in:
Economía Agraria (Revista Economia Agraria), Volume 13
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Published by Asociación de Economistas Agrarios de Chile

 Record created 2017-04-01, last modified 2018-01-22

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