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...

Purpose – Agribusinesses represent a fundamental link in connecting farmers with retailers and consumers, yet little research has been done to examine the historical financial performance of these food processing firms. This paper aims to address this issue. Design/methodology/approach – The...

Recent increases in the price of crude oil have led to a rise in the prominence of corn-based ethanol as an alternative source of energy. As a result linkages have been established between commodity and energy prices. The aim of this study is to determine if soybeans, corn, wheat, oil, and...

Consumer interest in locally produced foods has been increasing and many grocery retailers and other businesses have been involved in marketing local foods to interested consumers. We study the business strategies that food consumer cooperatives in the U.S. use to promote local foods to their...