We estimate the impact of direct payments under the 2002 Farm Act on the credit terms of farm operators, specifically the interest rate on short-term operating loans. In the analysis, we control for farm financial characteristic, farm operator characteristics, and other factors. Using data from...

Financial accounting has emphasized the historical cost approach because of its objectivity. Yet in the event of bankruptcy and liquidation, assets will be liquidated at their market values. In this paper, we compare the probability of insolvency computed using market values to the probability...

U.S. decoupled direct payments, paid to farm operators based on historic yields and base acreage under the 2002 Farm Bill, may alter a farmer’s access to credit or his ability to meet debt servicing obligations. Data from the U.S. Department of Agriculture (USDA) Agricultural Resource...

Prices for prime farmland have increased significantly in recent years. But, is the dramatic increase the result of a speculative bubble or is it consistent with market fundamentals with increases driven by growing global demand and recent changes to U.S. agricultural and energy policies? This...

The material contained herein is supplementary to the article named in the title and published in the American Journal of Agricultural Economics, Volume 90, Number 1, February 2008

We investigate irreversible investment behavior under uncertainty of payoffs using U.S. firm-level panel data. We estimate the relationship between the firm’s investment to capital ratio and the interest rate, while controlling for investment opportunities, real option values, uncertainty and...