Changes in Debt Patterns and Financial Structure of Farm Businesses: A Double Hurdle Approach

This paper uses a double hurdle model to help explain one aspect of the changing capital structure of U.S. production agriculture--the increase in the number of debt free farms. Our findings suggest that nonfinancial factors, such as operator age, region, risk aversion, and financial factors such as debt service ability and the cost of capital play significant roles in distinguishing borrowers from non borrowers.

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Year of publication:	2009-07
Authors:	Harris, James Michael ; Dillard, John ; Erickson, Kenneth W. ; Hallahan, Charles B.
Institutions:	Agricultural and Applied Economics Association - AAEA
Subject:	farm debt \| farm credit \| double-hurdle model \| farm businesses \| Agricultural Finance

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Extent:	application/pdf
Series:	2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin Number 49402
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004979696