Factors affecting paddy farmers to procure farm inputs in debt

Abstract

The aim of this study deals with reasons that almost paddy farmers in Mekong River Delta have to procure farm inputs in debt. With 216 households interviewed by questionnaires in An Giang province and using regression model, the study has found that the lack of capital for rice production and the cost of farm inputs are key elements to impact positively on paddy farmers who procure inputs in debt. Furthermore, householder’s paddy growing experience, rice selling price, residential area, and value of the property affect negatively inputs procurement in debt of rice farmers. In addition, household size, farm size, and interest of purchase of inputs in debt influence positively on rice farmers when they purchase inputs on credit.