This study examines credit score migration rates of farm businesses. We test whether migration probabilities differ across business cycles. Our results suggest that agricultural credit ratings are more likely to improve during expansions and deteriorate during recessions. We also test whether...

In this paper, we examine the contract design problem of banks that extend loans to poor borrowers and seek to maximize outreach while remaining financially sustainable. A dynamic model is developed that shows how interest rates can be determined based on information about productivity and...

This study examines the financial performance and stress experienced by beginning and retired farms in the U.S. Using USDA’s ARMS data, probit models are estimated to study the personal and farm characteristics that affect whether or not the financial ratios fall into critical zones. The...

The increasing use of agricultural contracts and processor concentration raises concerns that processors may offer lower contract prices in absence of local competition. This study examines the price competitiveness of marketing and production contracts depending on the availability of...

Replaced with revised version of paper 06/11/07.

Credit risk models are developed and used to estimate capital requirements for agricultural lenders under the New Basel Capital Accord. The study uses credit value-at-risk methods to calculate probability of default, loss given default, and expected and unexpected losses. Two applied models,...

This study examines the portfolio allocation of assets for farm and nonfarm households using the Agricultural Resource Management Survey and the Survey of Consumer Finances. The stylized facts of household finance, including limited participation in equity markets and heterogeneity of asset...

We examine how farm characteristics affect marketing contract decisions. We relax the restrictive assumptions of Tobit, Poisson, and multinomial logit models and consider the quantity, frequency, and contract type decisions conditional on, rather than jointly with, the contract adoption...

This study investigates the stock prices of the US agriculture industries with regard to anomalous abnormal returns. Do the Accrual Anomaly documented for the entire US stock market less the financial institutions persists in the US Agriculture Industries? Using the risk-free trading strategy of...