Research on USDA farm credit programs: past, present, and future

Ahrendsen, Bruce L.; Dodson, Charles B.; Dixon, Bruce L.; Koenig, Steven R.

doi:10.1108/00214660580001171

Cited by 9 publications

(6 citation statements)

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“…In an attempt to justify the importance of farm credits, Ahrendsen et al (2005) noted that the Federal farm credit programmes currently administered by the United State Department of Agriculture [USDA] were initiated to help the farm sector cope with natural disasters. In a similar vein, Ellinger et al (2005) observed that the performance, management and risk exposure of financial institutions operating in rural and agricultural markets determine the cost of agriculture's access to financial capital.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of micro-finance on small scale poultry business in South Western Nigeria

Akanni

2007

Emir. J. Food Agric

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Abstract:In the South Western region of Nigeria many small scale poultry farmers complain of limited access to funds. This is often linked with their low level of farm income and insufficient collateral securities. There is therefore low productivity in the sub sector. The resultant effect of this is the attendant decline in the quality and quantity of the poultry produce people now consume. These operators were selected through multi stage sampling technique. Both descriptive statistics and the Tobit regression model were used for the analysis of data. Only 76% of the farmers were up to 60 years of age while 69.64% had up to secondary school education. Average period of poultry experience was 8.06 years while the average farm household size was 12 members. 61% of these farmers sourced their funds from personal savings while 20 % used loans from co-operative societies. The sigma square (σ 2 ) value of 0.5448 indicated a good fit for the model and a normal distribution of the error term. Level of education, years of experience in poultry keeping and number of poultry birds were positively significant variables. Intensity of funding was highest for input usage (0.1318) and least for experience (0.0013).As a policy measure, issues relating to education, years of experience, lending rates and size of poultry farms needed some attention. This was necessary to ensure a higher fund security index (FSI) for small-scale industry. Keywords

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Section: Literature Reviewmentioning

confidence: 99%

Effect of micro-finance on small scale poultry business in South Western Nigeria

Akanni

2007

Emir. J. Food Agric

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“…that create obstacles for underserved, but deserving, borrowers in the farm sector to obtain the needed loan funds (Ahrendsen et al, 2005). Intense competition in the lending industry has compelled regular, commercial lenders to develop high credit risk assessment and loan approval standards that are quite difficult for certain farm borrowers to meet.…”

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confidence: 99%

“…Thus, the FSA accommodates such excluded or rejected clients, which are usually small and beginning farmers with inadequate business track record, among others, but have the potentials to thrive in the farming business (Dodson and Koenig, 2006). FSA also extends credit assistance to deserving socially disadvantaged borrowers whose access to regular farm loans could be constrained by racial, ethnic, or gender considerations (Ahrendsen et al, 2005).…”

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FSA farm loan repayment under economic recession and drought conditions

Escalante

Song

Dodson

2016

AFR

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Purpose The purpose of this paper is to analyze the repayment records of Farm Service Agency (FSA) borrowers in two distinct US farming regions that have been experienced serious drought conditions even as the US economy was going through a recession. The analysis will identify factors that significantly influence both the probability of FSA borrowers’ survival (capability to remain in good credit standing) and temporal endurance (or length of period of good standing with creditor). Design/methodology/approach This analysis utilizes a data set of farm borrowers of the Farm Service Agency that regular farm lenders have classified as “marginal” relative to other borrowers. The research goal is addressed by confining this study’s regional focus to the Southeast and Midwest that have both dealt with financial stress arising from abnormal natural and economic conditions prevailing during the same time period. A split population duration model is employed to separately identify determinants of the probability and duration of survival (condition of good credit standing). Findings This study’s results indicate that larger loan balances, declining commodity prices, and the severity of drought conditions have adversely affected both the borrowing farms’ probability of survival and temporal endurance in terms of maintaining non-delinquent borrower standing. Notably, Midwestern farms have been relatively less affected by drought conditions compared to Southeastern farms. This study’s results validate the contention that the farms’ capability to survive and the duration of their survival can be attributed to differences in regional resource endowments, farming activities, and business structures. Originality/value This study’s analytical framework departs from the basic duration model approach by considering temporal endurance, in addition to survival probability analysis. This study’s original contributions are enhanced by its specific focus on the contrasting farm business structures and operating environments in the Midwest and Southeast regions.

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“…Authorities were added in the 1970s to finance selected rural infrastructure such as housing, water supply, and waste disposal, as well as rural business and industrial development (Brake and Melchar 1970, p. 455). More recently these programs have been administered by the Farm Services Agency (FSA), with increased emphasis on guaranteed rather than direct loans and loans to beginning and socially disadvantaged farmers (Ahrendsen et al 2005).…”

Section: Contribution #2: Agricultural Economists Have Played a Key Rmentioning

confidence: 99%

Agribusiness Economics and Management

King

Boehlje

Cook

et al. 2010

American J Agri Economics

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Agribusiness scholarship emphasizes an integrated view of the food system that extends from research and input supply through production, processing, and distribution to retail outlets and the consumer. This article traces development of agribusiness scholarship over the past century by describing nine significant areas of contribution by our profession:(1) economics of cooperative marketing and management, (2) design and development of credit market institutions, (3) organizational design, (4) market structure and performance analysis, (5) supply chain management and design, (6) optimization of operational efficiency, (7) development of data and analysis for financial management, (8) strategic management, and (9) agribusiness education.

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Research on USDA farm credit programs: past, present, and future

Cited by 9 publications

References 0 publications

Effect of micro-finance on small scale poultry business in South Western Nigeria

Effect of micro-finance on small scale poultry business in South Western Nigeria

FSA farm loan repayment under economic recession and drought conditions

Agribusiness Economics and Management

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