Journal articles on the topic 'Farm loans'
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1
Long, Deng, Bruce L. Ahrendsen, Bruce L. Dixon, and Charles B. Dodson. "Modeling duration of FSA operating and farm ownership loan guarantees." Agricultural Finance Review 76, no. 4 (November 7, 2016): 426–44. http://dx.doi.org/10.1108/afr-04-2016-0036.
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Purpose The purpose of this paper is to identify determinants of feasible outcome events (expired with no loss, settled for loss, still performing) and time to event of Farm Service Agency (FSA) operating and farm ownership (FO) loan guarantees. Design/methodology/approach Data on 19,126 FSA guaranteed loans, which were made by various lenders to farmers who have limited ability to obtain loans from normal sources without the Federal guarantee, were collected. Cox proportional hazards models for operating loans (OLs) and FO loans are estimated to identify borrower characteristics, loan characteristics, lender types, and farm and macroeconomic environment factors that influence guarantee outcomes. Findings Loans with different characteristics (loan amount, loan term, lender type, region originated) and assistance programs (Beginning Farmer, Interest Assistance) have differing guarantee outcomes. Contemporaneous variables, in particular delinquency status, have a significant impact on guarantee outcomes. Research limitations/implications All loans were originated in calendar years 2004 and 2005. Since FO loans may have as long as 40 year terms, results are not as robust for FO loans as for OLs. Practical implications Different loan characteristics and macroeconomic conditions significantly influence the occurrence of possible guarantee outcomes and time to the outcomes. Originality/value Guaranteed loans are the primary method of government credit assistance to US farm operators. Data on individual borrowers have been difficult to obtain for much of the life of the guaranteed program because loan applications are held privately. This study provides insight on how various factors drive guarantee performance which is useful to policy makers trying to increase guaranteed loan program efficiency.
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Pederson, Glenn, Ananth Rao, and Michael Boehlje. "Determinants of Restructured Farm Loan Performance." Journal of Agricultural and Applied Economics 23, no. 2 (December 1991): 39–48. http://dx.doi.org/10.1017/s008130520001815x.
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AbstractA probabilistic model is applied to cross-sectional data to identify determinants of post-restructure performance of Federal Land Bank loans. The results indicate that restructured loans were sensitive to factors that determine the debt repayment burden and the repayment ability of the restructured farm operations. Loan performance is found to be relatively more sensitive to the levels of the post-restructure interest rate and cash farm income than to the financial structure and leverage position of the restructured farm. The relationships between the post-restructure interest rate, cash farm income level, and the probability of loan performance are illustrated.
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Dixon, Bruce L., Bruce L. Ahrendsen, O. John Nwoha, Sandra J. Hamm, and Diana M. Danforth. "FSA Direct Farm Loan Program Graduation Rates and Reasons for Exiting." Journal of Agricultural and Applied Economics 39, no. 3 (December 2007): 471–87. http://dx.doi.org/10.1017/s107407080002321x.
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Farm Service Agency (FSA) direct loans are intended to provide transitory credit to creditworthy borrowers unable to obtain conventional credit at reasonable terms. Farm loan program (FLP) effectiveness is measured in part by how readily direct loan borrowers graduate to conventional credit. A survey of FSA borrowers originating direct loans during fiscal years 1994-1996 is used to estimate graduation rates. A majority of 1994-1996 loan originators did exit the direct FLP by November 2004. A multinomial logit model indicates financial strength at origination resulted in greater likelihood of farming without direct loans approximately 9 years after loan origination.
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Dodson, Charles B., and Bruce L. Ahrendsen. "Farm and lender structural change: implications for federal credit." Agricultural Finance Review 77, no. 1 (May 2, 2017): 78–94. http://dx.doi.org/10.1108/afr-05-2016-0046.
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Purpose The purpose of this paper is to examine changes in the structures of US farms and lenders and identify prospective implications for federal credit. Design/methodology/approach Data from US farm operations for 1996-2014 were adjusted to 2014 values using commodity price indices. Farm size groups were constructed by value of farm production to analyze changes in farm numbers, production, assets, debt, leverage, liquidity, profitability, land tenure, commodity type, contract production, organization type, and use of Farm Service Agency (FSA) direct and guaranteed loans by farm size. Bank, Farm Credit System (FCS), and FSA data from 1996 to 2015 were adjusted to 2014 values. Lender size groups were constructed to analyze changes in bank and association numbers, farm loans, and use of FSA guaranteed loans by lender size. Findings The greatest consolidation has been by farms with over $2 million in production. More farm debt is held by large, complex organizations, frequently with multiple operators, more variable income, and greater reliance on production contracts and operating and nonreal estate credit. Large farms have greater leverage, are more profitable, and have a larger share of household income from the farm. Banks and FCS institutions are fewer and larger, yet smaller institutions use FSA guarantees to a greater extent. Larger farms tend to be more reliant on both direct and guaranteed FSA loans and are likely to become more dependent on FSA credit. Originality/value Changing farm and lender structure together with softening farm income may require FSA farm loan program changes to meet any increase in loan demand. Policy alternatives are provided to meet changing demand for farm credit.
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Sun, Hong, Valentina Hartarska, Lezhu Zhang, and Denis Nadolnyak. "The Influence of Social Capital on Farm Household’s Borrowing Behavior in Rural China." Sustainability 10, no. 12 (November 22, 2018): 4361. http://dx.doi.org/10.3390/su10124361.
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This paper evaluates whether social capital affects the ability of farm households to obtain formal and informal loans. We test for the impact of two measures of social capital. The first measure, kinship, captures the traditional aspects of bonding social capital in rural areas that might affect the probability of getting informal loans. As the economic reforms in China have changed the traditional rural way of life and weakened the role of kinship, more mobile farmers are likely to develop a different kind of social capital also based in the Chinese tradition but not focused exclusively on kin. This friendship social capital is hypothesized to affect farmers’ ability to get both formal and informal loans. We use the Chinese Household Finance Survey data from 2013 and estimate the probability of obtaining credit, while also accounting for the reverse causality. In addition, we use the Heckman selection model to establish how social capital affects not only the probability of getting loans but also the size of the loan. Empirical results suggest that social capital affects borrowing by farm households. In particular, the friendship social capital has a positive effect on farm household’s ability to get formal loans, and has a substitution effect on informal borrowing, while kinship has a positive effect on farm households’ ability to get informal loans. Friendship and kinship are positively associated with the amount of a farm household’s formal and informal loans, respectively.
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Quaye, Frederick Murdoch, Denis Nadolnyak, and Valentina Hartarska. "Factors Affecting Farm Loan Delinquency in the Southeast." Research in Applied Economics 9, no. 4 (December 27, 2017): 75. http://dx.doi.org/10.5296/rae.v9i4.12165.
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This study examines the factors and behaviors that affect Southeast US farmers’ ability to meet their loan repayment obligations within the stipulated loan term. The study uses a 10-year (2003-2012) pooled cross-sectional data from the USDA ARMS survey data (Phase III). A probit approach is used to regress delinquency against various borrower-specific, loan-specific, lender-specific, macroeconomic and climatic variables for the first part.The results show that farmers with larger farms, farmers with insurance, farmers with higher net income, farmers with smaller debt to asset ratio, farmers with single loans and those that take majority of their loans from sources apart from commercial banks are those that are less likely to be delinquent. Temperature and precipitation also affect outcomes, but by minute magnitudes.
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LaDue, Eddy L., and Kenneth C. Carraro. "The Effect of Interstate Banking on Farm Lender Market Shares in New York State." Northeastern Journal of Agricultural and Resource Economics 15, no. 1 (April 1986): 61–65. http://dx.doi.org/10.1017/s0899367x00001343.
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Commercial bank loans to New York farmers are significantly overestimated in the reported USDA statistics due to out-of-state lending and reporting of some agribusiness loans as agricultural loans by New York State banks. Correcting for this distortion lowers the 1978–84 average New York agricultural credit market share held by banks from 36 to 24 percent. As deregulation allows more interstate banking activity, the overestimate of agricultural loan volume in states with money center banks and the corresponding underestimate of loan levels and market shares in nonmoney center states could cause increased distortion of state level farm debt statistics.
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Jones, Ghangela, Cesar Escalante, and Hofner Rusiana. "Reconciling information gaps in organic farm borrowers’ dealings with farm lenders." Agricultural Finance Review 75, no. 4 (November 2, 2015): 469–83. http://dx.doi.org/10.1108/afr-01-2015-0002.
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Purpose – Organic outputs have been increasing at much lower rates than growth in consumer demand. Organic farmers’ debt aversion hinders them from obtaining business funds through borrowing. The purpose of this paper is to clarify that the farmers’ reluctance to use debt as a funding option can be more attributed to gaps in existing borrower-lender relationships, beyond sustainability principles. Design/methodology/approach – Empirical evidence collected from organic farmers and farm lenders establish differing expectations and perceptions that reinforce the organic farmers’ debt aversion. The farm lender survey data set was analyzed using the Heckman approach applied to two lenders’ decisions: their interest in lending to organic farm borrowers and loan amounts approved for successful loan applicants. The econometric results were reconciled with the compiled inputs provided by organic farmers interviewed. Findings – Results validate the farmers’ lower reliance on loans due to suspicions that lenders lack knowledge and consideration of organic farming conditions and principles. Farm lenders must depart from employing a uniform credit risk appraisal model and adopt borrower-specific versions of the model, but not necessarily delineating organic-conventional farming dichotomy that may not substantially affect credit risk measurement. Organic farms, on the other hand, need to better understand the credit risk appraisal principles and use their inherent business strengths to compete for loans with conventional farms without any special consideration. Practical implications – Borrower-lender relationships can improve if information gaps between lenders and borrowers can be minimized with more extensive outreach education efforts. Better relationships would increase organic farms’ credit access to effectively address an impending supply gap in an expanding industry. Originality/value – To the knowledge, a specific focus on organic farms in understanding farm borrower-lender relationships has never been explored in literature.
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Gunter, Lewell, Webb M. Smathers, Michael C. Ingram, and Robert Dubman. "Analysis of Economic Emergency Loan Allocations and Credit Market Expansion." Journal of Agricultural and Applied Economics 17, no. 2 (December 1985): 21–32. http://dx.doi.org/10.1017/s0081305200025024.
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AbstractThe Economic Emergency (EE) loan program, administered by the FmHA, was created by Congress in 1978. The primary purpose of the program was to provide credit to farmers who were unable to obtain credit from normal lenders due to economic stress. Over six billion dollars of EE loans were extended nationally during fiscal years 1978 through 1981. This paper examines the allocation of EE loans at the state level and the expansionary effect of the program on farm credit markets. Empirical evidence is provided that EE funds were allocated to states consistently with the general criteria cited in the development of the EE program and that the EE program expanded farm credit markets rather than displacing loans from other sources.
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Maiangwa, MG. "Loan collaterals and collateral substitutes in rural finance: a review." Journal of Agriculture, Forestry and the Social Sciences 11, no. 2 (February 17, 2015): 36–56. http://dx.doi.org/10.4314/joafss.v11i2.4.
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Poor farm households and other microentrepreneurs have difficulties in obtaining loans from banks and other financial institutions because they are unable to provide securities or collaterals for the loans. Collaterals on loans reduce uncertainty and moral hazard problems for creditors. They also serve as a measure of the seriousness of the borrower. The limited availability of conventional collaterals in rural financial markets has led to the acceptance of non-traditional methods of loan security referred to as collateral substitutes. This paper reviews loan collaterals and collateral substitutes in the rural financial markets of developing countries.Keywords:: Collaterals, collateral substitutes, rural finance.
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Nadolnyak, Denis, Xuan Shen, and Valentina Hartarska. "Farm income and output and lending by the farm credit system." Agricultural Finance Review 77, no. 1 (May 2, 2017): 125–36. http://dx.doi.org/10.1108/afr-03-2016-0020.
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Purpose The purpose of this paper is to provide evidence of the positive impact of the FCS lending on farm incomes which should be useful to policymakers as they consider reforms and further support for this 100-year-old major agricultural lender. Design/methodology/approach The authors construct a panel for the 1991-2010 period from the FCS financial statements and evaluate how lending by the FCS institutions has affected farm incomes and farm output. The authors use fixed effects estimations and control for credit by other agricultural lenders as well as the stock of capital, prices, and interest rates. Since previous work suggests that rural financial markets are segmented and the FCS serves larger full-time farmers with mostly real-estate backed loans, the authors evaluate the impacts of farm real-estate backed loans and of short-term agricultural loans separately for a shorter period for which the data is available. The authors also perform robustness checks with alternative estimation techniques. Findings The authors found a positive association between credit by the FCS institutions and farm income and output. The magnitude of the estimated impact is larger during the 1990s than in the 2000s. Research limitations/implications The positive link between the FCS institutions’ credit and farm incomes and output supports the notion that the FCS lending was beneficial to farmers. The evidence also supports the segmentation hypothesis of rural financial markets. The financial reports data for 1991-2010 are from the ACAs and FLCAs aggregated on the regional level because there is no clear way to classify FCS lending to a more disaggregate level like the state. The authors also assemble and analyze a state-level data set that contains state-level balance sheet data for the period 1991-2003. Originality/value The authors are not aware of another work that directly links (real estate and non-real estate) credit by FCS institutions to agricultural output and farm incomes.
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Namayengo, Faith, Johan A. C. Van Ophem, and Gerrit Antonides. "Women and microcredit in rural agrarian households of Uganda: Match or mismatch between lender and borrower?" Applied Studies in Agribusiness and Commerce 10, no. 2-3 (August 1, 2016): 77–88. http://dx.doi.org/10.19041/apstract/2016/2-3/9.
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The alignment of microfinance programs with the context and expectations of the recipients is critical for ensuring clients’ satisfaction and desired program outcomes. This study sought to investigate the extent to which the objectives and design of the BRAC microfinance program match the expectations, context and characteristics of female borrowers in a rural agrarian setting in Uganda. Quantitative and qualitative methods were used to obtain socio-demographic, personality and microenterprise (ME) characteristics of existing borrowers, incoming borrowers and non-borrowers and to obtain information about the microcredit program. We found that BRAC uses a modified Grameen group-lending model to provide small, high-interest rate production loans and follows a rigorous loan processing and recovery procedure. BRAC clients are mainly poor subsistence farmers who derive income from diverse farming and non-farm activities. The major objective to borrow is to meet lump-sum monetary needs usually for school fees and for investment in informal small non-farm businesses. Many borrowers use diverse sources of funds to meet repayment obligations. Defaulting on loans is quite low. The stress caused by weekly loan repayment and resolution of lump-sum cash needs were identified as reasons for women to stop borrowing. The limited loan amounts, the diversions of loans to non-production activities, the stages of the businesses and the weekly recovery program without a grace period may limit the contribution of these loans to ME expansion and increase in income.
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Majchrzak, Adam. "RESTRUCTURING FARM-RUNNING ENTITIES – LEGAL ASPECTS." Annals of the Polish Association of Agricultural and Agribusiness Economists XXII, no. 1 (January 29, 2020): 224–31. http://dx.doi.org/10.5604/01.3001.0013.7814.
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The Act of 9 November 2018 on debt restructuring for farm-running entities introduced, into Polish law, certain instruments aimed at improving the financial liquidity of agricultural enterprises, which are insolvent or threatened with insolvency, and ultimately, enhancing their competitiveness in the EU market. These instruments consist of providing state aid in the form of subsidies to the interest of restructuring loans or loans for financing the repayment of debt arising in connection with conducting agricultural activity, as well as in the National Support Centre for Agriculture (KOWR) providing state aid in the form of guarantees securing the repayment of the restructuring loan, and in KOWR taking over a farm-running entity’s debt arising in connection with conducting agricultural activity in exchange for the transfer of ownership of their property to the State Treasury. The solutions enacted function in parallel to the possibility of making an arrangement with creditors and effecting remedial actions based on the provisions of Restructuring Law. The aim of the article is to evaluate the enacted regulations from the point of view of their consistency with the provisions of Restructuring Law, their compliance with the principles and objectives presented in the justification of the bill, and the expected results. Interpretation of intent and systemic interpretation of legal acts was used, with the application of historical and logical methods. Following the analysis carried out, it was concluded that with the regulations currently in force, the objectives of the act assumed by the legislator and the anticipated results will not be achieved in full.
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Kitchens, Carl, and Price Fishback. "Flip the Switch: The Impact of the Rural Electrification Administration 1935–1940." Journal of Economic History 75, no. 4 (December 2015): 1161–95. http://dx.doi.org/10.1017/s0022050715001540.
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To isolate the impact of access to electricity on local economies, we examine the impact of the Rural Electrification Administration low-interest loans in the 1930s. The REA provided loans to cooperatives to lay distribution lines to farms and aid in wiring homes. Consequently, the number of rural farm homes electrified doubled in the United States within five years. We develop a panel data set for the 1930s and use changes within counties over time to identify the effect of the REA loans on a wide range of socio-economic measures. The REA loans contributed significantly to increases in crop output and crop productivity and helped stave off declines in overall farm output, productivity, and land values, but they had much smaller effects on nonagricultural parts of the economy. The ex-ante subsidy from the low-interest loans was large, but after the program was completed, nearly all of the loans were fully repaid, and the ultimate cost to the taxpayer was relatively low.
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Khan, Rao Abdul Rauf. "Farm Loans Recovery Problem in Pakistan: Its Possible Solution." Pakistan Development Review 33, no. 4II (December 1, 1994): 837–43. http://dx.doi.org/10.30541/v33i4iipp.837-843.
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The emerging trend of focussing more and more attention on improving the production and productivity of farming in Pakistan has prompted bankers to evolve better schemes to improve the income generation capacity of the farming community and help them repay the borrowed funds in time. This can be called a step in the right direction. The Agriculture Development Bank of Pakistan (ADBP) the Federal Bank for Cooperatives (FBC) and the Commercial Banks are the major formal institutions, which because being Government owned have in fact become the agents for rural development purveying the most important input i.e. credit. Hence, the expansion and growth of the banking sector have become synonymous with national welfare. The main objective of banks in lending is to improve the recycling of funds capability borrowed from the public or raised from internal or external sources for the benefit of society. The recovery of loans portrays a dismal picture. Since agricultural lending expanded extensively, the recovery percentage has received a great setback due to which as per estimate more than half of the funds are not funnelled back. In fact, financial distress has always been a feature of the financial scene but most of the time it has been associated with being a sectoral problem such as those affecting agriculture and industries.
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Dodson, Charles. "Bank size, lending paradigms, and usage of Farm Service Agency's guaranteed loan programs." Agricultural Finance Review 74, no. 1 (April 29, 2014): 133–52. http://dx.doi.org/10.1108/afr-01-2013-0002.
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Purpose – An established paradigm in small business lending is segmented by bank size with large banks more likely to lend to large informationally transparent firms while small banks are more likely to lend to small informationally opaque firms. In light of banking consolidation, this market segmentation can have implications for credit availability. Federal loan guarantees, such as those provided by USDA's Farm Service Agency (FSA) may reduce the risks of lending to informationally opaque firms thereby mitigating the impacts of the bank size lending paradigm. This paper aims to discuss these issues. Design/methodology/approach – This analysis utilized a binomial logit procedure to determine if there was any empirical evidence that smaller community banks served a unique clientele of farmers when making FSA-guaranteed loans. The analysis relied on a unique data set which incorporated detailed data on farm businesses receiving FSA-guaranteed loans, loan characteristics, as well as information about the originating bank and characteristics of the local credit markets. Findings – Results were consistent with the bank size lending paradigm with smaller banks being less likely to engage in fixed-asset lending, and more likely to serve a riskier and less established clientele when making guaranteed loans. Research limitations/implications – Data limitations did not permit detailed analysis of banks larger than $250 million in total assets nor for consideration of non-bank lenders. An expansion by these lender groups into serving more informationally opaque borrowers could mitigate any adverse impacts arising from fewer small community banks. Practical implications – The results suggested that Federal guarantees do not completely eliminate the relative informational advantages of large and small size banks. And, continued bank consolidation, such that there are fewer small community banks, could result in less credit availability among smaller, less creditworthy farm businesses. Social implications – While FSA guarantees may not enhance a large banks propensity to serve informationally opaque farm borrowers, they may enhance the ability of smaller community banks to serve groups specifically targeted through FSA lending programs; the provision of credit to family farmers who, despite being creditworthy, are unable to obtain credit at reasonable rates and terms. Originality/value – The analysis examines relationship between bank size and the use of FSA guarantees using a unique data set which incorporated information on FSA-guaranteed loans, farm financial characteristics, along with characteristics of commercial banks which participated in the FSA-guarantee program.
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O. I., Ettah, and Ebu B. O. "DETERMINANTS OF AGRICULTURAL LOAN ACCESS FROM FORMAL SOURCES IN CROSS RIVER STATE CENTRAL AGRICULTURAL ZONE, NIGERIA." International Journal of Research -GRANTHAALAYAH 6, no. 5 (May 31, 2018): 1–8. http://dx.doi.org/10.29121/granthaalayah.v6.i5.2018.1414.
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Formal agricultural loan is an important tool in agricultural development and key to agricultural modernization. This is because this source of loans enables farmers to have access to production inputs as well as adopt modern farm technologies. For agricultural development to be achieved and sustained, agricultural loan is required especially in the rural areas where majority of the populace are engaged in agriculture. The study set out to analyse the determinants of agricultural loan access from formal sources in Cross River State central agricultural zone, Nigeria and proffer policy recommendations based on the findings. A three-stage random sampling technique was employed to get a total of 100 respondents with the use of a detailed structured questionnaire. Descriptive statistics and multiple regression model were used to analyse the data. Result of the analysis showed that socio-economic characteristics of farmers such as: age, gender, occupational status, household size, educational level, farming experience, farm size, farm income, off- farm income, and labour use by respondents determined farmers access or otherwise to loan from formal sources and result of the logit regression model showed that age, education, farm size, collateral, farm income and cooperative membership all affected access of loan from formal sources positively, while farm experience do not determine access of loan from formal sources. The following recommendations were made: farmers in the area should be encouraged by government to enhance their educational level, more farmland should also be made available to increase their farm size and cooperative society’s membership should be encouraged by government.
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Wirakusuma, Gilang, and Irham Irham. "Can Credit Program Improve Agricultural Productivity? Evidence from Indonesia." E3S Web of Conferences 232 (2021): 01006. http://dx.doi.org/10.1051/e3sconf/202123201006.
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Agricultural credit is a vital policy in improving farm performance since agricultural households face financial constraints in their business. This study aims to: (1) examine the impact of credit s on agricultural productivity while investigating the difference in impact generated by loans originating from governmental program loans and nonprogram loans and; (2) identify the characteristics of farm households that influence the use of credit in their business. This study employed cross-sectional micro-data at the household level drawn from the 2013 Indonesian Agricultural Census, in which 86,922 rice farm households were randomly selected as the research sample. The model was examined by using Two-Stage Least Square to avoid the selectivity bias. Results show that credit originated from government programs has a small impact on agricultural productivity, although the significant correlation appears. Furthermore, the use of credit, both government programs, and non-programs are determined by socio-economic aspects, agricultural subsidy, perceptions on risks, and perception on-farm profitability. Based on the results, the provision of credit to agricultural activities has to be supported by the provision of supporting incentives, such as agricultural counseling and irrigation facilities, in order to boost agricultural productivity effectively.
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Ahrendsen, Bruce L., Bruce L. Dixon, and Atien Priyanti. "Growth in Agricultural Loan Market Share for Arkansas Commercial Banks." Journal of Agricultural and Applied Economics 26, no. 2 (December 1994): 430–42. http://dx.doi.org/10.1017/s1074070800026353.
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AbstractChanges in commercial bank market shares of farm debt are decomposed into portfolio decisions, loanable funds availability and loan market size for 64 counties in Arkansas from 1986 through 1990. A seemingly unrelated regression model is hypothesized to identify county characteristics that are related to changes in commercial bank market shares. Regression results indicate that county differences in economic activity, the relative risk associated with agriculture, farm structure and regional location contributed to changes in commercial bank market shares. The results imply a market niche for rural commercial banks emphasizing agricultural loans in the presence of unlimited branch banking.
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Dodson, Charles B., and Bruce L. Ahrendsen. "Characteristics of borrowers likely to benefit from loan modifications." Agricultural Finance Review 78, no. 4 (August 6, 2018): 425–40. http://dx.doi.org/10.1108/afr-08-2017-0072.
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Purpose The purpose of this paper is to identify the characteristics of borrowers likely to benefit from loan modifications (restructuring) which includes concessions provided to the borrower from the lender. Design/methodology/approach Data were drawn from the US Department of Agriculture Farm Service Agency (FSA) for borrowers who had received an operating loan modification during 2005-2010. A logistic regression model is estimated to identify the characteristics associated with the likelihood of a borrower paying the modified loan as agreed or receiving a subsequent loan modification within seven years. Explanatory variables included financial condition, type and year of loan modification, farm type, organizational type, borrower demographics, and region. Findings Loans requiring more complex loan modifications and borrowers with previous loan restructuring, larger farms, little equity in loan collateral, little or no capital, and/or little to no liquidity are less likely to perform following loan restructuring, which could suggest a possible futility in providing concessions to these types of borrowers. Many of these borrowers ended up having a subsequent restructure within a short period of time. Most of the regional variability in loan performance appears to have been a result of land values and commodity prices and not jurisdictional laws. Originality/value FSA has followed a policy of providing loan modifications to the borrowers experiencing repayment problems for more than 25 years. Though farm financial conditions have remained relatively strong through 2016, a continuation of the low farm incomes and declining farm real estate values could increase farm loan repayment problems in upcoming years and increase interest in farm loan modifications from both lenders and policymakers. FSA’s experience provides a rich data source to examine and provide a better understanding of the costs and benefits associated with loan modifications.
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Jha, Srirang, Amiya Kumar Mohapatra, and Shyam S. Lodha. "Political Economy of Farm Loan Waivers in India." FIIB Business Review 8, no. 2 (May 8, 2019): 88–93. http://dx.doi.org/10.1177/2319714519844128.
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Political leadership of various states in India is under tremendous pressure to provide instant relief to the farmers reeling under debt trap, resulting in suicides in several cases. Often, suicides by peasants are widely covered in the media which in turn sway the people’s perception about apparent indifference of the government towards the farming communities of the country. This certainly brings in concerns related to political economy revolving around judicious distribution of wealth and national income of the country. State governments of India are generally reluctant to waive off the farm loans as a matter of routine due to concomitant burden on exchequer that might adversely affect their fiscal balances. However, political parties tend to use farm loan waiver as tactics to come to power in spite of the fact that such populist measures are not good for the economy, nor do they offer a long-term solution to the age-old problem of higher degree of incidence of indebtedness among the farming communities. This article explores the antecedents and consequences of farm loan waivers and the way forward. Besides, it also reconnoitres whether the state takes such decisions as farm loan waiver purely on the basis of economics or any hidden political agenda.
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Sakprachawut, Soontaree, and Damien Jourdain. "Land titles and formal credit in Thailand." Agricultural Finance Review 76, no. 2 (July 4, 2016): 270–87. http://dx.doi.org/10.1108/afr-12-2015-0055.
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Purpose – The purpose of this paper is to investigate the effects of land titles and farmers’ characteristics on their participation in the formal credit market in a land reform area of Thailand. Design/methodology/approach – Data collected on 218 farm households in one land reform area of Western Thailand are analyzed with a generalized double-hurdle model to calculate the probability of farm households to take a loan and the size of the loans from a formal credit institute, the Bank for Agriculture and Agricultural Co-operatives. Findings – The results suggest that the absence of a title, whether fully or partially transferable, decreases significantly the participation to the formal credit market and the size of the loans. However, this effect was small. The findings also indicate that the farm assets, household head’s gender and age, and the labor force per hectare were significantly influencing the probability of participation to borrow money as well as the amount borrowed. Practical implications – The possibility given to farmers having title with partial transferability to provide alternative types of guarantees reduced the gap in loan-taking between the different types of land title. However, the presence of a land title, transferable or not, had a significant influence on farmers demand and success in obtaining credit. Originality/value – The paper investigates the possible effects of a unique partial land rights in Thailand that guarantees only security of use of the land but prohibits sale.
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Rajeev, Meenakshi, and Christoph Scherrer. "Smallholders’ Challenges: Realizing Peri-Urban Opportunities in Bengaluru." Sustainability 13, no. 18 (September 10, 2021): 10160. http://dx.doi.org/10.3390/su131810160.
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Urban expansion creates potential for increased incomes among previously rural smallholders from sources other than traditional agriculture. Harnessing this potential, however, requires investments into agricultural upgrading or non-farm activities. The article addresses the question concerning to what extent these investments are realised in the peri-urban space of Bengaluru. Its answers are based on a review of the literature and extensive field surveys in two differentially developed districts assessing the smallholders’ economic situation in 2019 and as a recall in 2009. Our findings are that only a few smallholders were able to realise the peri-urban opportunities. Household income increased in real terms only by a little, especially from farming. Instead of a traditional farm to non-farm production linkage, surpluses from the non-farm sector were seen to meet the working capital needs of the farm sector. While physical access to formal financial institutions has significantly improved, formal borrowing is dominated by small-sized loans from registered self-help groups or traditional priority sector loans. Only a few households took up non-farm activities as many others failed to obtain sufficient credit and lacked knowledge about remunerative non-farm projects. Overall, rising outlays for education and health services leave little resources for any productive investments.
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Botterill, Linda Courtenay, and Bruce Chapman. "An income-related loans proposal for drought relief for farm businesses." Australian Journal of Public Administration 63, no. 3 (September 2004): 10–19. http://dx.doi.org/10.1111/j.1467-8500.2004.00386.x.
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Nadolnyak, Denis, Valentina Hartarska, and Xuan Shen. "Climate Variability and Agricultural Loan Delinquency in the US." International Journal of Economics and Finance 8, no. 12 (December 4, 2016): 238. http://dx.doi.org/10.5539/ijef.v8n12p238.
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<p>Inter-annual climate variability in the Southeastern US that affects farm productivity and cash flows is largely dependent on the predictable El Nino Southern Oscillation (ENSO) phenomenon. In this paper, we estimate the association between the ENSO anomalies and the performance of agricultural loan portfolios of the Farm Credit System (FCS) institutions - the largest agricultural lender in this region. We find that, compared to neutral years, the share of delinquent loans in the FCS portfolio decreases by 1.5 to 2 percentage points following La Nina years and increases by 1.5 to 2 percentage points following El Nino years. These delinquencies are generally resolved because the impact on loan write-offs is much smaller, although statistically significant which suggests that the FCS institutions have well-diversified portfolios. The results also suggest that agricultural insurance markets are complementary to credit markets, that land values at loan origination have a positive impact on delinquencies, and that loan write-offs decrease with the lender’s size.</p>
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McClendon, Thomas V. ""Hiding Cattle on the White Man's Farm": Cattle Loans and Commercial Farms in Natal, 1930-50." African Economic History, no. 25 (1997): 43. http://dx.doi.org/10.2307/3601878.
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Verter, Nahanga, and Věra Bečvářová. "An Analysis of Yam Production in Nigeria." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 63, no. 2 (2015): 659–65. http://dx.doi.org/10.11118/actaun201563020659.
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Yams as a stable food crops do not only serve as integral vehicle for food security, but also as a source of income, and employer of labour in the producing areas in Nigeria. Lack of finance, inadequate farm inputs, storage facilities and high cost of labour are identified as the primary constraints to yam production in the country. This article deals with most of the determinants of yam production, constraints and the importance yam products in Nigeria. The findings of the study suggest that farm size, producer price, fertilizer use, yield (Hg/Ha), and economic growth have a positive influence on yam production in Nigeria. On the contrary, the result shows an inverse relationship between commercial loans and yam production in the country. There is an urgent need for the Nigerian government to provide a conducive environment and investment climate by subsidising farm inputs and providing affordable loans to the smallholder yam farmers for a sustainable production.
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Upadhyay, Namdev, Samaya Gairhe, Yogendra Acharya, Yuga Nath Ghimire, Krishna Prasad Timsina, and Ashok Acharya. "Credit’s use performance and its determinants on farm household: A case of Chitwan district of Nepal." Journal of Agriculture and Natural Resources 3, no. 2 (October 30, 2020): 140–49. http://dx.doi.org/10.3126/janr.v3i2.32493.
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Credit has been considered to play a pivotal role in the agricultural development of Nepal. A large number of institutions are involved in the disbursement of credit to agriculture. In this backdrop, the present study has examined the performance of agricultural credit and has identified the determinants of increased use of credit at the farm household level in Nepal. The study was based on survey data consisting of 107 samples collected randomly from the Chitwan district. The study has revealed that the quantum of credit availed by the farming households is affected by several socio-demographic factors which include caste, economically active population, food sufficiency, and membership in an organization. The research revealed that if the household is Brahmin/ Chettri, the probability of borrowing loans decreased by 32% as compared to other castes. Similarly, if the household’s economically active population increased by one unit, the probability of taking a loan increased by 16%. The results also show that, if household food sufficiency increased by one month the probability of taking loans decreased by 4 % but if the household head is a member of an organization, the probability of taking a loan increased by 28%. The congenial environment to increase the involvement of the household head to an organization like cooperative and farmers group, increasing the food self-sufficiency through productivity enhancement program and creating awareness on credit utilization helps to increase credit use performance in Agriculture.
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Fink, Günther, B. Kelsey Jack, and Felix Masiye. "Seasonal Liquidity, Rural Labor Markets, and Agricultural Production." American Economic Review 110, no. 11 (November 1, 2020): 3351–92. http://dx.doi.org/10.1257/aer.20180607.
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Rural economies in many developing countries are characterized by a lean season in the months preceding harvest, when farmers have depleted their cash and grain savings from the previous year. To identify the impacts of liquidity during the lean season, we offered subsidized loans in randomly selected villages in rural Zambia. Ninety-eight percent of households took up the loan. Loan eligibility led to increases in on-farm labor and agricultural output, driving up wages in local labor markets. Larger effects for poorer households suggest that liquidity constraints contribute to inequality in rural economies. (JEL O13, O15, O18, Q11, Q12, R23)
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Bard, Sharon K., Peter J. Barry, and Paul N. Ellinger. "An Analysis of Interest Rate Differences on Non‐Real Estate Farm Loans." Applied Economic Perspectives and Policy 18, no. 2 (May 1996): 247–57. http://dx.doi.org/10.2307/1349436.
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Yan, Yan, and Peter J. Barry. "Loss‐given‐default on farm real estate loans: probability of full recovery." Agricultural Finance Review 66, no. 1 (May 5, 2006): 47–59. http://dx.doi.org/10.1108/00214660680001179.
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Dixon, Bruce L., Bruce L. Ahrendsen, Brandon R. McFadden, Diana M. Danforth, Monica Foianini, and Sandra J. Hamm. "Competing risks models of Farm Service Agency seven‐year direct operating loans." Agricultural Finance Review 71, no. 1 (May 10, 2011): 5–24. http://dx.doi.org/10.1108/00021461111128138.
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Bannor, Richard Kwasi, Helena Oppong-Kyeremeh, Mercy Derkyi, Albert Yingura Adombila, and Ernest Christlieb Amrago. "Village savings and loans association participation and impact on off-farm income among rural women." Journal of Enterprising Communities: People and Places in the Global Economy 14, no. 4 (August 6, 2020): 539–62. http://dx.doi.org/10.1108/jec-04-2020-0058.
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Purpose This paper aims to examine the factors that influence rural women’s participation in Village Savings and Loans Association (VSLA) and the savings contribution in the Kassena-Nankana West District of Ghana. The study also analysed the impact of VSLA participation on off-farm income and on poverty. Design/methodology/approach In total, 120 rural women were selected for this study. The probit and heteroskedasticity linear regression models were used to examine the factors that influence VSLA participation and the savings made by members, respectively. The propensity score matching technique, coupled with Rosenbaum Sensitivity analysis, were used to analyse the impact of VSLA on off-farm income and poverty. Findings Demographic and livelihood factors such as human, natural, financial, physical and social capitals have different influences on the participation and the savings contribution in the VSLA. Moreover, VSLA has a significant impact on off-farm income; however, it did not affect poverty. Originality/value Despite the numerous studies on VSLA, there is little evidence of literature of its impact on off-farm income of rural women in West Africa, specifically, Ghana. Thus, this paper expands the frontiers of the existing literature on VSLA impact assessment and the factors that influence the savings made by women in the association.
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Savitha, Basri, and Naveen Kumar K. "Non-performance of financial contracts in agricultural lending." Agricultural Finance Review 76, no. 3 (September 5, 2016): 362–77. http://dx.doi.org/10.1108/afr-01-2016-0001.
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Purpose Evaluating a portfolio of agricultural loans has become an important issue in recent years primarily due to a large number of loan defaults. The purpose of this paper is to investigate the factors influencing credit repayment behavior of farmers in Karnataka. Design/methodology/approach The study is based on secondary data of 590 farmers collected from a private bank in the state of Karnataka, India. Binary logistic regression and multinomial regression analysis was carried out to estimate the probability of non-payment of a loan. Findings The results of the regression confirm a significant relationship between non-repayment of agricultural credit and characteristics of borrowers such as the age, years of banking relationship, yield of the crop, distance to bank branch, size and tenure of the loan, farm size and leverage and efficiency ratio. Practical implications The factors predicted by the model do certainly help in improving the decision-making process in agricultural lending. A rigorous assessment of family responsibilities, farm size, credit-to-asset ratio, interest burden on the farmers and farm income is suggested to reduce the probability of doubtful assets. Originality/value The studies that predict default risk in agricultural loan are limited in India. This is one of the few studies that estimate the determinants of substandard and doubtful categories of credit in a private sector bank.
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Hanson, Steven D., Robert J. Myers, and James H. Hilker. "Hedging with Futures and Options under a Truncated Cash Price Distribution." Journal of Agricultural and Applied Economics 31, no. 3 (December 1999): 449–59. http://dx.doi.org/10.1017/s1074070800008762.
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AbstractMany agricultural producers face cash price distributions that are effectively truncated at a lower limit through participation in farm programs designed to support farm prices and incomes. For example, the 1996 Federal Agricultural Improvement Act (FAIR) makes many producers eligible to obtain marketing loans which truncate their cash price realization at the loan rate, while allowing market prices to freely equilibrate supply and demand. This paper studies the effects of truncated cash price distributions on the optimal use of futures and options. The results show that truncation in the cash price distribution facing an individual producer provides incentives to trade options as well as futures. We derive optimal futures and options trading rules under a range of different truncation scenarios. Empirical results highlight the impacts of basis risk and yield risk on the optimal futures and options portfolio.
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Rambaldi, Alicia N., Hector O. Zapata, and Ralph D. Christy. "Selecting The “Best” Prediction Model: An Application To Agricultural Cooperatives." Journal of Agricultural and Applied Economics 24, no. 1 (July 1992): 163–69. http://dx.doi.org/10.1017/s008130520002608x.
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AbstractA credit scoring function incorporating statistical selection criteria was proposed to evaluate the credit worthiness of agricultural cooperative loans in the Fifth Farm Credit District. In-sample (1981-1986) and out-of-sample (1988) prediction performance of the selected models were evaluated using rank transformation discriminant analysis, logit, and probit. Results indicate superior out-of-sample performance for the management oriented approach relative to classification of unacceptable loans, and poor performance of the rank transformation in out-of-sample prediction.
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Ahmad, Muhammad Irshad, Les Oxley, and Hengyun Ma. "What Makes Farmers Exit Farming: A Case Study of Sindh Province, Pakistan." Sustainability 12, no. 8 (April 14, 2020): 3160. http://dx.doi.org/10.3390/su12083160.
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In agriculture based economies like Pakistan, farmers often shift from farming to off-farm activities as part of an apparent livelihood transition strategy, despite the fact that most of the workforce depends upon farming. In this paper, we try to uncover insights into how livelihood assets, such as human capital, natural capital, economic capital, and locational characteristics, affect a household’s exit decision from on-farm to off-farm activities as a livelihood transition strategy in rural Pakistan. We analyzed data from 335 farming households from the second largest agricultural producing province in the country, Sindh. Our findings show that more than 19% of households have completely shifted from farming to off-farm activities. Furthermore, we identified that the ‘crop input credit’ is one of the major constraints to farmers converting their previous input-driven small loans into larger loans, where large markups may be imposed if they fail to pay when the harvest is made. The empirical findings from Binary Logistic Regression provide strong evidence for family labor characteristics, particularly for working-age males, working-age females, and working-age children. Surprisingly, the cultivated land size significantly and positively influences farm exit rather than a continuation of farming. Off-farm employment, exogenous shocks, and urbanization also significantly and positively influenced the decision to transition into off-farm work. In contrast, the age of the household head, livestock ownership, and distance to a commercial zone significantly inhibited the decision to exit farming. However, government assistance, including subsidies, strongly encouraged farmers to continue farming. These findings provide new insights into the factors affecting the drivers of both exit and continuation in the farming sector as part of a long-term livelihood transition strategy.
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Lyne, Michael, Paul Zille, and Douglas Graham. "Financing the Market-Based Redistribution of Land to Disadvantaged Farmers and Farm Workers in South Africa: Recent Performance of the Land Reform Credit Facility." Sociological Research Online 5, no. 2 (September 2000): 57–65. http://dx.doi.org/10.5153/sro.495.
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This paper compares the results of public and private land redistribution in the province of KwaZulu-Natal, South Africa. It identifies problems that constrain access to the land market, and describes recent efforts to address the liquidity problem associated with mortgage finance. The Land Reform Credit Facility (LRCF) was launched by government in May 1999 to help alleviate cash flow problems on farms purchased by disadvantaged buyers and financed with mortgage loans from commercial banks. The LRCF does not offer subsidies. Rather it offers loans with deferred or graduated repayment schedules to reputable banks and venture capital investors who finance, on similar terms, equity-share projects and land purchased by aspiring farmers. The paper outlines the LRCF experience and considers reasons for its promising start. The loan target of R15 million (US$2.15 million) set for the first year was reached after only eight months.
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Tweeten, Luther G. "Directions of U.S. Farm Programmes under a Freer Trade Environment." Pakistan Development Review 40, no. 2 (June 1, 2001): 89–105. http://dx.doi.org/10.30541/v40i2pp.89-105.
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For the new round of WTO multilateral trade liberalisation negotiations to be successful, the world will need to be more enthusiastic and flexible about opening markets. Partisans will need to submerge their self-interests, and the U.S. will need to take the initiative for more open markets. This paper makes the case that only modest changes in the U.S. domestic grain, oilseed, and cotton programmes are needed for compatibility with global free trade. The Federal Agricultural Improvement and Reform (FAIR) Act of 1996 and related policy changes in the 1990s brought fundamental reforms compatible with freer domestic and foreign markets. Chief among these were a shift from coupled deficiency payments to decoupled direct payments, an end to supply management, and less engagement of government in commodity stock accumulation and export subsidies. Converting commodity price support to recourse loans while ending all but administrative cost subsidies to crop insurance would go far to liberalise grain, oilseed, and cotton policies. Unilateral termination of commodity programmes including direct payments totalling 42 percent of net cash farm income in year 2000 would appear to be traumatic to producers. However, reduction of direct payments could be offset (for farm income) by rising farm commodity prices and receipts resulting from (1) less farm output attending lower loan rates and crop insurance subsidies, and (2) world farm commodity price-enhancement from freer global trade.
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Snowden, Kenneth A. "Covered Farm Mortgage Bonds in the United States During the Late Nineteenth Century." Journal of Economic History 70, no. 4 (December 2010): 783–812. http://dx.doi.org/10.1017/s0022050710000720.
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Covered mortgage bonds have been used successfully in Europe for two centuries, but failed in the United States when introduced as farm mortgage debentures in the 1880s. Using firm-level data and a sample of loans made by one Kansas mortgage company, I find that debenture programs grew out of established loan brokerage operations and were used to fund mortgages that were difficult to broker because of size, term, or risk characteristics. Debentures broadened access to the interregional mortgage market and facilitated an expansion of western farm mortgage debt before the innovation failed in the mortgage crisis of the 1890s.“[T]he availability of affordable mortgage financing is essential to turning the corner on the current housing crisis …. One option we have looked at extensively is covered bonds, which … have the potential to increase mortgage financing, improve underwriting standards, and strengthen U.S. financial institutions ….”Secretary of Treasury Henry PaulsonJuly 28, 2008
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Cockfield, Geoff, Linda Courtenay Botterill, and Simon Kelly. "A prospective evaluation of contingent loans as a means of financing wild dog exclusion fences." Rangeland Journal 40, no. 6 (2018): 591. http://dx.doi.org/10.1071/rj18054.
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Invasive species, such as wild dogs can be considered an externality arising from the activities of pastoral enterprises, with producers having limited responsibility for the problem and limited capacity to mitigate it. There are therefore arguments for government intervention through encouraging both individual and collective control measures. Governments are however increasingly inclined to ensure recipients of support make some contribution where there are private benefits. An example of this, in Australia, is the requirement that students repay some of the cost of their tertiary education. Using the issue of wild dog exclusion fencing in south-west Queensland as a case study, this paper considers if and how a policy instrument adopted for higher education (HECS-HELP), contingent loans, could be adapted to address problems of externalities in rural Australia. Central to the issue of exclusion fences are high upfront costs and highly variable incomes that limit the ability to recoup those costs according to a predictable timeline. Considering a range of incomes and a variety of private/government shares of the cost of the fences, we examine the effects of revenue contingent loans for the construction of these fences, using model farms developed from survey data for farm businesses in south-west Queensland. We find that contingent loans could mitigate the hardship effects of additional debt and variable incomes. Businesses with smaller properties and relatively lower incomes may however struggle to pay back larger loans. Using south-west Queensland as a case study, we show how different shares of contributions change the time to pay back loans, outline how a contingent loan scheme might be administered and note some issues with integrating personal contingent loans into a collective fence arrangement.
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Sivatharshika, B., and A. Thayaparan. "Credit Worthiness and Repayment Performance Among Small – Holder Farmers in Sri Lanka: Application of Probit Model." European Journal of Marketing and Economics 2, no. 3 (September 25, 2019): 13. http://dx.doi.org/10.26417/ejme.v2i3.p13-22.
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The objective of the study is to examine the factors which determine the credit worthiness and loan repayment performance among the small-holder farmers in Vavuniya district in Sri Lanka. A sample of 113 small –holder agricultural loan borrowers from five villages who get the loans from SANASA TCCS served as the respondents in the study. A set of structured questionnaire was used to collect the primary data from the respondents who lives in the five villages located in Marukkarambali GS division in Vavuniya district, Sri Lanka during the period of 2018/2019. The dependent variable is the credit worthiness measured as binary variables where it takes as one for defaulters and zero for non - defaulters and the selected demographic characters, farming characters and farmers’ attributes were taken as explanatory variables in the study. To identify the above characters on the credit worthiness of the farmers’ descriptive statistics, and binary probit model were employed. The results of the descriptive statistics revealed that, 43.4% of the respondents belonged to the defaulters while 56.6% of them belonged to the non – defaulters in the study. Estimated results of the probit model suggest that among the demographic characteristics, age of the farmers, levels of education, number of family members positively influenced the loan repayment performance of smallholder farmers, while among farming characters, income, farm size, land ownership, farming experience, off-farm activities, purpose of loan and possibility of crop failure were positively impact on credit worthiness and repayment performance at different significant levels. On the other hand, knowledge about the loan and responsible guarantors were the major factors of farmers’ attributes influencing the repayment performance in the study. The overall findings of the study may help to the farmers as well as to the micro finance institutions to predict the repayment behaviour of the new loan applicants and to make the decision to grant loans in future.
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Arene, C. J., and G. C. Aneke. "The Position of Women in the Repayment of Agriculture Loans in Nigeria: An Analysis." Vikalpa: The Journal for Decision Makers 24, no. 4 (October 1999): 29–34. http://dx.doi.org/10.1177/0256090919990405.
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The study attempts to assess the credit system within the framework of the Supervised Agricultural Credit Scheme (SACS) in Enugu State of Nigeria. The emphasis is on repayment position and technical aid to female farmers. The results show that high repayment rate farmers had a larger loan size, larger farm size, higher gross income, shorter distance between home and source of loan, higher leve l of formal education, larger household size, and higher level of adoption of innovations than low repayment rate farmers. Detailed statistical analysis reveals that the number of farm visits is significantly related to the farmers' gross income while number of farmers supervised, length of service as supervisors, and level of formal training in agriculture account for less. Loan programmes for female farmers are of great importance for the development of agriculture. Their efficiency is, however, considerably determined by good quantitative and qualitative supervision and advi sory service.
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Khanal, Aditya R., and Omobolaji Omobitan. "Rural Finance, Capital Constrained Small Farms, and Financial Performance: Findings from a Primary Survey." Journal of Agricultural and Applied Economics 52, no. 2 (February 5, 2020): 288–307. http://dx.doi.org/10.1017/aae.2019.45.
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AbstractCapital and credit constraints limit the small farm’s ability to adequately use resources for optimum performance. Farmers’ access to capital is constrained in multiple ways, including price factors, risk factors, and transaction factors, as well as access to and ease of rural agricultural financing. Using a primary survey data of small farms in Tennessee, we analyzed factors influencing credit constraint and its impact on farm performance. Farm operators’ gender, off-farm work, land acreage holdings, farm specialization, and the use of smart phone with Internet significantly influenced credit constraint. We found that the financial performance of credit constrained small farmers was significantly lower than that of unconstrained small farmers—an adverse impact of constrained capacity to credit could result in up to $51,000 lower in gross farm sales. Additionally, our reason-specific results within credit constraint suggested that around $32,000 to $39,000 lower performance in gross sales can be attributable to the constrained borrowing with deficit to obtain agricultural loans at required or desired level.
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Toth, Marian, Tomas Rabek, and Zuzana Strapekova. "Impact of Integration and Globalization on Business Risk and loans in Slovak Agriculture." SHS Web of Conferences 74 (2020): 05027. http://dx.doi.org/10.1051/shsconf/20207405027.
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The paper evaluates the effects of integration and globalization on individual farms in Slovakia after EU accession in 2004. The decrease in employment in agriculture is a result of technological progress, changes in individual family preferences and low income in agriculture in comparison to other sectors of economy. In the production commodities with low labor input dominate. Cereals, oilseeds and industrial crops dominate the agriculture production in Slovakia. Large farms benefit in form of economy of scale and agricultural output of farms remains low in Slovakia. The paper compares the risk of crop and animal production based in individual farm data using Markowitz portfolio theory. The crop production is more risky due to higher effects of weather condition compared to animal production. The second part of the paper evaluates the changes on access to credit and finance gap of farms in Slovakia. Based on individual interviews with representatives of demand and supply of loans the paper concludes that large the Common agricultural policy is playing a dominant role in access to credit. Banks consider the CAP subsidies to be a stable income factor and good collateral for loans. The loan market is dominated by short term loans and the majority of the market offers are coming from 4 commercial banks. The finance gap exists towards small farmers and farmers with animal production and special crops.
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Rahman, MA, F. Ahmed, MS Islam, and MA Khan. "Pond fish culture and needs for credit: A study in selected areas of Tangail district." Journal of the Bangladesh Agricultural University 13, no. 1 (July 14, 2016): 117–24. http://dx.doi.org/10.3329/jbau.v13i1.28727.
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This study examines the cost, returns, profitability of pond fish farm, requirements, adequacy, sources and utilization patterns of credit and problems associated with pond fish farming in Madhupur Upazila of Tangail district. A total of 60 farmers with small traditional types of ponds were randomly selected for this study. Both description and econometric analysis were used. Human labour was the most important and one of the largest inputs used for pond fish production. The average per acre human labour cost, fingerlings cost, feed cost, chemical fertilizers cost, manure cost, and lime cost were Tk. 9345, Tk. 18506, Tk.10476, Tk.3759, Tk. 329, and Tk.1605, respectively. Pond rental value was calculated at Tk. 11537 per acre for one year which shared 26.42 percent of total costs of pond fish production. Gross return was Tk. 70928 per acre. Gross margin and net return of the pond fish farm were Tk.38118 and Tk. 24081 per acre respectively. The BCR was 1.514. Out of 60 farmers, only 11 farmers received loans from different sources and 86.67 percent of applied amount received. About 83 percent of the loan used for operating expenditure of farming and rest 17 percent loan used for non-farm expenditure. There were some problems in fish farming, such as insufficient water, high feed cost etc. Government needs to provide subsidized feed, technical supports and credit facilities for the small scale fish farmers.J. Bangladesh Agril. Univ. 13(1): 117-124, June 2015
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Zając, Stanisław. "The economic, financial and legal situation of private estates in Poland during the interwar period." Forest Research Papers 74, no. 2 (June 1, 2013): 137–48. http://dx.doi.org/10.2478/frp-2013-0014.
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Abstract The bad economic situation for agro-forest farms in Poland during the interwar period was caused by war damage, a global economic crisis, crop failure, indebtedness prior to World War I, and by tribute payments towards rebuilding the country. Although the timber harvest was substantial, farm owners were forced to take loans. In 1938, the debt level of agro-forest farms accounted for 18 per cent of their total value. The average debt level for this period oscillated between 9.8 and 126.0 PLN/ha-1. The assistance programme implemented by the government provided for a reduction in the interest rate of loans, particularly for farms with an area up to 300 ha.
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Cheng, Fang, Haisen Zhang, and Nobeji S. Boniphace. "Determinants of Off-farm Employment Participation of Women in Rural Uganda." International Journal of World Policy and Development Studies, no. 54 (April 20, 2019): 28–41. http://dx.doi.org/10.32861/ijwpds.54.28.41.
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Off-farm employment in rural areas can be a major contributor to rural poverty reduction and decent rural employment. While women are highly active in the agricultural sector, they are less active than men in off-farm employment. This study analyzes the determinants of participation in off-farm employment of women in rural Uganda. The study is based on a field survey conducted in nine districts with the sample size of 1200 individual females. A two-stage Hechman’s sample selection model was applied to capture women’s decision to participate and the level of participation in non-farm economic activities. Summary statistics of the survey data from rural Uganda shows that: i) poverty and non-farm employment has a strong correlation, implying the importance of non-farm employment as a means for poverty reduction; and ii) there is a large gender gap to access non-farm employment, but the gender gap has been significantly reduced from group of older age to younger generation. The econometric results finds that the following factors have a significant influence on women’s participation in off-farm employment: education level of both the individual and household head (positive in both stages); women’s age (negative in both stages); female-headed household (negative in first stage); household head of polygamous marriage (negative in both stages); distance from major town (negative in the first stage); household size (positive in the second stage); dependency ratio (negative in the second stage); access to and use of government extension services (positive in the first stage); access to and use of an agricultural loan (negative in the second stage); and various district dummies variables. The implications of these findings suggest that those policies aimed at enhancing the identified determinants of women off-farm employment can promote income-generating opportunities for women groups in comparable contexts. In order to capitalize on these positive linkages, policies should be designed to improve skills and knowledge by providing education opportunities and increasing access to employment training, assistance services and loans for non-farm activities and by targeting women in female-headed, large and distant households. The government should increase investments in public infrastructure and services, such as roads, telecommunications and emergency support.
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Kashmanian, Richard M., and Robert F. Rynk. "Creating positive incentives for farm composting." American Journal of Alternative Agriculture 13, no. 1 (March 1998): 40–45. http://dx.doi.org/10.1017/s0889189300007608.
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AbstractWith the growing concern about the impact of agriculture on water quality and heightened interest in managing agricultural by-products economically, the use of composting by U.S. farmers is increasing. Over 8,000 farms are now composting animal mortalities, manure, crop residues, and selected organic materials from communities and industries. At least 75% of farm composting operations are composting poultry mortalities. Based on discussions with contacts in leading agricultural states and organizations, this paper provides examples of technical and economic incentive programs encouraging farmers to adopt composting as a way to manage farm by-products. These programs have been established largely by the public sector, including state agencies, public universities, USDA, and USEPA. However, they are often initiated by or conducted in partnership with the private sector entities such as farms, livestock and poultry product companies, and composting businesses. Examples of incentive programs include research and demonstration projects, extension educational programs, technical standards, regulatory incentives, cost-sharing, financial grants, and low-interest loans. Many projects have succeeded in expanding the practice of composting among farms. For example, the now common practice of composting poultry mortalities can be traced to research and educational programs at the Universities of Maryland and Delaware, which were followed by a national technical standard adopted by the USDA. Similar success stories are apparent in other composting incentive programs, such as for composting of swine mortalities in Missouri, dairy manure in Michigan, and non-farm materials in California and Pennsylvania.
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Fishback, Price. "How Successful Was the New Deal? The Microeconomic Impact of New Deal Spending and Lending Policies in the 1930s." Journal of Economic Literature 55, no. 4 (December 1, 2017): 1435–85. http://dx.doi.org/10.1257/jel.20161054.
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The New Deal during the 1930s was arguably the largest peace-time expansion in federal government activity in American history. Until recently, there had been very little quantitative testing of the microeconomic impact of the wide variety of New Deal programs. Over the past decade scholars have developed new panel databases for counties, cities, and states and then used panel data methods on them to examine the impact of New Deal spending and lending policies for the major New Deal programs. In most cases, the identification of the effect comes from changes across time within the same geographic location after controlling for national shocks to the economy. Many of the studies also use instrumental variable methods to control for endogeneity. The studies find that public works and relief spending had state income multipliers of around one, increased consumption activity, attracted internal migration, reduced crime rates, and lowered several types of mortality. The farm programs typically aided large farm owners but eliminated opportunities for share croppers, tenants, and farm workers. The Home Owners' Loan Corporation's purchases and refinancing of troubled mortgages staved off drops in housing prices and home ownership rates at relatively low ex post cost to taxpayers. The Reconstruction Finance Corporation's loans to banks and railroads appear to have had little positive impact, although the banks were aided when the RFC took ownership stakes. (JEL D72, E61, L52, N41, N42)