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An Economic Alternative To Concessional Farm Interest Rates

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  • Baker, Chester B.

Abstract

A variable amortization plan is proposed, indexing annual payments made by farm mortgage borrowers. A debt reserve balance also is proposed to stabilize payments received by lenders. Research implied by the proposal is outlined, together with modelling suggestions for investigating effects of the plan on farm income after debt servicing requirements have been met.

Suggested Citation

  • Baker, Chester B., 1974. "An Economic Alternative To Concessional Farm Interest Rates," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 18(3), pages 1-22, December.
    • Handle: RePEc:ags:ajaeau:22894
    DOI: 10.22004/ag.econ.22894
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    References listed on IDEAS

    as
    1. Anderson, Jock R., 1972. "An Overview of Modelling in Agricultural Management," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(03), pages 1-12, September.
    2. T.E. Glau, 1970. "The Commonwealth Drought Bond," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 14(2), pages 121-130, December.
    3. C. B. Baker, 1968. "Credit in the Production Organization of the Firm," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(3), pages 507-520.
    4. Jean-Marc Boussard, 1971. "Time Horizon, Objective Function, and Uncertainty in a Multiperiod Model of Firm Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(3), pages 467-477.
    5. Peter J. Barry & C. B. Baker, 1971. "Reservation Prices on Credit Use: A Measure of Response to Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(2), pages 222-227.
    6. Glau, T.E., 1970. "The Commonwealth Drought Bond," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 14(2), pages 1-10, December.
    7. Davidson, Bruce Robinson, 1971. "The Effect of Declining Wool Prices, Wheat Quotas and Debt Reconstruction on the Financial Viability of Australian Farmers," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(01), pages 1-14, March.
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    Cited by:

    1. Baker, Chester B., 1976. "An Economic Alternative To Concessional Farm Interest Rates: Reply," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 20(2), pages 1-2, August.
    2. Freebairn, John W., 1983. "Drought Assistance Policy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 27(3), pages 1-15, December.
    3. Barnard, Freddie L. & Klotz, J. Claire, 1993. "Report on the Effects of Indexing Interest Rates on Farm Debt to Gross Farm Income," Staff Papers 200400, Purdue University, Department of Agricultural Economics.
    4. Bruce Chapman & Linda Courtenay Botterill, 2009. "A Revenue Contingent Loan Instrument for Agricultural Credit with Particular Reference to Drought Relief," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 12(2), pages 181-196.

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