Racial/Ethnic Discrimination in USDA’s Direct Farm Lending Programs
AbstractAn analysis of default by racial and ethnic minorities is estimated for direct farm loans made by USDA’s Farm Service Agency (FSA) in fiscal 2005. Logit model results indicated that when controlling for creditworthiness, Blacks who received FSA direct loans had higher default rates suggesting they were generally less creditworthy. This would not be consistent with the Becker ‘taste based’ discrimination model and provides no evidence of discrimination either by FSA or by commercial lenders. Higher default rates for other racial minorities and women provide no evidence of discrimination among other SDA groups.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150492.
Date of creation: 2013
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Racial discrimination; FSA direct lending; taste-based discrimination; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics;
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- Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162.
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