Flow‐of‐Funds Social Accounts for the Farm Sector

Abstract

Flow‐of‐funds accounts and component sources‐and‐uses‐of‐funds statements relate changes in balance sheet accounts to income statements, describing movement from one balance sheet to the next. While the Federal Reserve System compiles a farm business sector sources‐and‐uses‐of‐funds statement consistent with and part of the national flow‐of‐funds accounts, the statement is not definitionally and conceptually consistent with published farm income and balance sheet accounts. An alternative farm sector sources‐and‐uses‐of‐funds statement is proposed that contains these features, and its potential applications and extensions are delineated.

Cash Flows and Financing in Texas Agriculture

“…The following sources of nonreal estate debt were identified: (1) Published data on a statewide basis are available for loans outstanding at the first of each year for lenders 1 through 4. Data on loans outstanding for lender (5) was estimated from national data by assuming the same relationship exists between noninstitutional lenders to institutional lenders in Texas as it does for the U.S. Data on loans outstanding, while not flow variables, can be used to estimate loans made (LMt) and loans repaid (LR t ) in year t for example. This difference in loans outstanding from one year to the next (LOt+i-LOt) must equal the differences between loans made and loans repaid in the t-th year:…”

Flow‐of‐Funds Social Accounts for the Farm Sector: Reply

“…The SAUF statement we presented in [4] includes both cash and internal noncash flows of capital on a net basis. Lins and Penson have elsewhere [3] proposed extensi ve grossing and disaggregation of the SAUF statement along geographic, demographic, and transactions lines.…”

“…4 The full set of data upon which the results in [2J were based were unavailable or would have been quite expensive to duplicate. The Swamy procedure is applied here because the time series and cross-section model conforms more directly to his specifications.…”

An econometric model for analyzing regional source and use of funds in U.S. agriculture: an application of random coefficients technique

“…The flow of funds analysis in agriculture has taken major steps recently. Penson et al (1971) developed a flow of funds social account for the farm sector consistent with U.S. Department of Agriculture (USDA) balance sheet accounts. The main purpose of this study is to open the door for future research in these areas.…”