A logit model was used to distinguish between producers in the Northern Springbok Flats who had failed financially versus those who were financially successful, based on data from a survey which was conducted during 1990. Producers who had failed financially by April 1994 spent more on directly allocatable costs, had higher levels of carry-over debt and arrears instalments on long-term loans, had less collateral in the form of land, had lower farm gross incomes in relation to their long-term debt and bought land during the 1980's. Results reveal a need for improved financial and risk management, better consideration of implications of state intervention, and the use of solvency as well as pay-back measures when assessing credit worthiness.