Abstract:
The aim of the study is to identify factors that affect m farmers’multipurpose cooperativemembers’Agricultural inputloan repaymentperformance,. Data for this study were collectedfrom primary and secondary sources.In the course of this study primary data were collectedfrom 140 randomly selected farmers from3multi-purpose farmers’cooperatives.A randomsampling technique was adopted to select three farmers’multi-purpose cooperatives. Inaddition, secondary datawere collected from reports, profile, minutes of the cooperativemembers, unpublished materials, district cooperative promotion office and Agriculture andrural development office documents.Descriptive statistics was used to describe factor thataffect the agricultural input loan repayment performance. SPSS statistical package wasemployed to compute descriptive statistics were used to generate data for descriptivestatistics. Binary logit regression model was employed to identify factors affectingagricultural input loan repaymentperformanceof the sampled households.In addition, the t-test and Chi-square tests were employed to compare non-defaulters and defaulters group,with respect to some explanatory variables. A total of twelve explanatory variables wereincluded in the empirical model and out of these, four were found to be statisticallysignificant. Distance of from lending institution (cooperatives), Age, distance from marketand livestock holdingpositively influencing loan repayment performanceas evidenced by themodel statistic.To achieve this the government should increase extension worker to increasethe default rate of the farmers, extension workers specifically instigate the farmers to involveoff-farm activities in addition to on farm activities, the government either regional or districtlevel facilitate infrastructure like road to transportation for the farmer to have frequentmarket visit. Thisincrease the rate of repayment of loan.
