An Analysis of Factors Affecting Repayment of Agricultural Credits

Along with owner's equity, credits from external sources are also important in the process of farms' production activities. farms' demand for credit varies depending on the income generated from production.repayment problems may occur in this process.the aim of this study is to determine the factors that may lead to defaults on agricultural credits used by farms in eskisehir via performing logistic regression analysis. results of the data collected from 117 farms through a survey reveals that 70,94% of farms have used credit cards specialized for agriculture and 9,4% of farms have not been able to make their repayments in time. in conclusion of the analysis, economic profitability ratio, credit tenor and leverage ratio variables have been found to be associated with the dependent variable in a meaning degree.