Factors Influencing Credit Default: A Case Study of Maize Farmers in the Asante Akim North District of Ashanti Region

In order to empirically assess the factors causing the default of credit repayment among maize farmers, a study of this nature becomes imperative. The Asante Akim North District of the Ashanti Region was selected because, maize farmers in the District had benefitted from the Special Maize Project (SMP). The target population was all 400 maize farmers. A total sample size of 60 maize farmers was selected using the systematic sampling for every 5th person from the sampling frame. Frequencies, percentages and the probit model were used to analyse the data. Results of the probit model revealed that age, household size, rent, status of farmer and output significantly influence credit default. About 87% of the farmers con- sider the SMP idea as a good step by MOFA. The study recommends that farmers from different areas should also be included in the project.