A research study submitted in patial fulfillment or the requirement for the degree or master of science, School of Engineering and Technology

Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 1983

This Study is an attempt to fine the social factors that determine famers{u2019} demand for credits, both for production and consumption purposes. The general economic status of the farmers will also be discussed. One hundred farmers in the Lam Dorn Moi Self-help Land Settlement Changwat Udon Ratchathani have been used as the sample in this study. The questionnaire was used to obntain the primary data from the sample farmer-respondents. Secondary data from the provincial office were also utilized in the descriptions and analise 01 prevailing conditions. Tne SPSS Subprogrammes were used to description statistics from tne sample. With respect to the sources of funds, these samples were devided into two groups the first group was farmers who obtained credits from financial institutions as the Bank, of Agriculture and Agricultural cooperatives, the farmer{u2019}s Association and the Thai-German Land Settlement Promotion Project; the second group was farmers who obtained credits from local non-institutional creditors. The interest rate paid by the first group is legally fixed, but the interest rate paid by the second group is much higher thab that allowed by law. It was found that the number of household members was the most important factor to determine the demand for credits of farmer who obtaind institutional loans. The income, land area for rice cultivation and interest6 rate respectively. For non-institutional loans, the number of household members also was the most important factore that determined the demand for credits. It was followed by land area for rice cultivation, farm household assets, and farm household incom, respectively.