Agricultural Finance Review: Volume 77 Issue 1

Guest editorial

Historical developments in agricultural finance and the genesis of America’s farm credit system

The purpose of this paper is to provide a review of major historical developments in agricultural finance, with particular emphasis on agricultural credit. It reviews the…

Following beginning farm income and wealth over time: A cohort analysis using ARMS

The paper examines the evolution of beginning farms’ income statement and balance sheet items over a 15-year period. The purpose of this paper is to gain insight into the…

A disequilibrium evaluation of public intervention in agricultural credit markets

Agricultural producers rely on debt capital to support many functions of their enterprise, yet private credit markets are frequently characterized by an imbalance between supply…

Farm entry and exit from US agriculture

The purpose of this paper is to use a linked-farm approach and a cohort approach to estimate farm entry and exit rates using the US Census of Agriculture. The number of new farms…

Characterizing US dairy farm income and wealth distributions

The structural change of the dairy industry has been a long-term process with fewer, larger dairy herds in all regions. The purpose of this paper is to evaluate whether this…

Farm and lender structural change: implications for federal credit

The purpose of this paper is to examine changes in the structures of US farms and lenders and identify prospective implications for federal credit.

Modeling debt choice in agriculture: the effect of endogenous asset values

The purpose of this paper is to investigate the endogeneity of asset values and how it relates to farm financial stress in US agriculture. The authors conceptualize an implied…

Agency cost of debt: evidence from Kansas farm operations

The purpose of this paper is to examine how debt affects the cost structure of a farm. Agency costs arise when stakeholders of a farm manage their farm differently to obtain debt…

Farm income and output and lending by the farm credit system

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…

Forecasting Kansas land values using net farm income

With the decline of US net farm income from $123.8 billion in 2013 to $71.5 billion forecasted for 2016, concern has developed regarding the future path of agricultural land…

Effects of business maturity, experience, and size on farms economic vitality: A credit migration analysis of Farm Service Agency borrowers

The purpose of this paper is to examine the relative financial strength and endurance of several paired classes of farmers according to business maturity (beginning versus mature…

Agricultural credit risk and the macroeconomy: Determinants of Farm Credit Mid-America PD migrations

The purpose of this paper is to explore the linkage between agricultural sector and macroeconomic factors with farm financial health. It considers whether agricultural lenders can…

Factors affecting risk-rating migration

The purpose of this paper is to examine empirical customer account data from 2006 through 2012 to review the probability of default (PD) rating methodology implemented by a FCS…

Heterogeneity in loss aversion: evidence from field elicitations

Prospect theory is now widely accepted as the dominant model of choice under risk, but has not been fully incorporated into applied research because of uncertainty about how to…