Ranking of Factors Affecting Credit Risk of Agricultural Facilities: A Case Study of Fattening Units in Ardabil Province of Iran

The performance of Bank Keshavarzi of Iran (BKI)/ Agriculture Bank of Iran in the field of facility repayment indicates a decrease in the amount of facility repayment, which can be a serious issue for the survival of financial and credit institutions. Therefore, this study aimed at ranking the factors affecting the credit risk of agricultural facilities in fattening units in Ardabil province of Iran. The data was collected in 2019 through questionnaires and interviews with banking experts and facility recipients. The results of the logit model showed that the variables of being a previous customer of the bank, years of repayment, experience, amount of facilities and cash flow at the level of five percent and variables of hall area, farmyard and number of installments, education and ownership at level ten percent would affect the repayment of the facility; in addition, based on qualitative analysis, from the facility recipients’ viewpoints, the most important factors affecting non-repayment would include the lack of food input at a reasonable price and lack of government support, natural disasters and failure to evaluate the plan at the current price.