The effect of risk on farmland values and returns is analyzed using a capitalization model. County-level models are estimated using spatial econometric techniques. Our results show that riskier regions and growing conditions have both lower land values and higher risk-adjusted rates of return to...

This study compares the economic well-being of farm and nonfarm households using data from the 2004 Agricultural Resource Management Survey and the 2004 Survey of Consumer Finances. Comparisons are made in terms of income and wealth using Tukey-Kramer mean separation tests, regression analysis,...

In this study, we attempt to prove some previously held ideas of machinery investment decisions using farm level data from Illinois. Investment decisions are analyzed taking into consideration past investment decisions in the county and on the individual farm. The results show there is a...

This paper examines the effect of diversification on farm value by comparing values of diversified farms to a portfolio of comparable specialized farms. Using data from the Agricultural Resource Management Study, this study finds a diversification discount in agriculture similar to the discount...

We applied the migration approach to credit scoring measurement to determine how ratings, focused on farm characteristics such as farm size, age, and farm business type, change across business cycles. The empirical results from analyzing migration matrices using data from FBFM suggest that old,...

While traditional finance theory suggests that leasing and debt are substitutes, some papers demonstrated the theoretical possibility of complementarity. Empirical studies indicate that both are possible. In this paper we will use the Tobit model, ordinary least squares and quantile regression...

Researchers prefer to use a demand system that best fits their data. This paper examines a nonnested test of comparison between the quadratic expenditure system (QES) and the almost ideal demand system (AIDS). We determine which model is more suitable by analyzing the value and the significance...

The Chinese grain policy reforms were implemented in 1994. The grain price subsidies were eliminated which led to a substantial grain price increase. This paper examines the welfare changes associated with the grain policy reforms. All welfare measures unambiguously show that the consumers...

The ‘‘Aggie Bond’’ program was established in the 1980s to provide beginning and lowequity farmers access to capital. The bonds, which pay tax-exempt interest, may be used by qualifying famers for purchases of farm real estate and equipment. Using Aggie Bond data...

This study examines the price competitiveness of marketing and production contracts depending on whether contracts are with cooperatives or investorowned firms. A propensity score matching method is used to compare prices using contract data from a national farm-level survey. The results show...