Changes in Debt Patterns and Financial Structure of Farm Businesses: A Double Hurdle Approach
AbstractThis 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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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49402.
Date of creation: Jul 2009
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farm debt; farm credit; double-hurdle model; farm businesses; Agricultural Finance;
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