Agricultural Finance Review: Volume 67 Issue 1

Factors affecting the agricultural loan decision‐making process

Allen M. Featherstone, Christine A. Wilson, Terry L. Kastens, John D. Jones

Agricultural lenders in today’s environment face many challenges when evaluating the creditworthiness of farm borrowers. To address these challenges, a survey was conducted with…

FSA direct loan targeting: successful and financially necessary?

O. John Nwoha, Bruce L. Ahrendsen, Bruce L. Dixon, Daniel M. Settlage, Eddie C. Chavez

The Farm Service Agency (FSA) direct farm loan program provides credit to family‐sized farms including those operated by beginning farmers and socially disadvantaged applicants…

Efficiency differences of U.S. agricultural banks

Onelack Choi, Spiro E. Stefanou, Jeffrey R. Stokes

A balanced panel data set covering 519 U.S. agricultural banks is constructed for the period 1996S2005. Cost efficiency measures of agricultural banks obtained from stochastic…

Estimating delinquency migration and the probability of default from aggregate data

Jeffrey R. Stokes, Brent A. Gloy

Defaulting on a mortgage represents the ultimate consequence of past decisions to delay payment. While many modeling approaches are available to estimate the probability of…

An analysis of credit risk migration patterns of agricultural loans

Andrew Behrens, Glenn D. Pederson

Loan migration analysis is conducted using a large data set of loan risk ratings in the Farm Credit System. We find path dependence and limited support for a trend reversal…

Markov chain models for farm credit risk migration analysis

Xiaohui Deng, Cesar L. Escalante, Peter J. Barry, Yingzhuo Yu

This study introduces two Markov chain time approaches, time‐homogeneous and nonhomogeneous models, for analyzing farm credit risk migration as alternatives to the traditional…

Changes in the distribution of farm wealth in the United States

Ashok K. Mishra, Charles B. Moss, Kenneth W. Erickson

This paper examines the changes in farm sector wealth from 1949 through 2002. The study uses Theil’s entropy‐based measure of inequality of farm wealth for 10 regions of the…

Analysis of rainfall derivatives using daily precipitation models: opportunities and pitfalls

Martin Odening, Oliver Musshoff, Wei Xu

This study examines rainfall variability and its implications for wheat production risk in northeast Germany. The hedging effectiveness of rainfall options and the role of…

Evaluation of risk management alternatives for indiana grain producers

Ana R. Rios, George F. Patrick

Crop insurance and pre‐harvest pricing strategies were analyzed for “all years” and “years following a normal crop year” scenarios for the 1986 through 2001 period in three…

Buying stock in value‐added companies: an alternative choice for vertical diversification?

Joshua D. Detre, Christine A. Wilson, Allan W. Gray

Recent research has indicated that livestock producers who want to manage risk and diversify their operations should invest in the stock market. This research evaluates whether or…