IDEAS home Printed from https://ideas.repec.org/a/ags/jasfmr/190761.html
   My bibliography  Save this article

Measuring the Financial Health of U.S. Production Agriculture

Author

Listed:
  • Brewer, Brady
  • Wilson, Christine
  • Featherstone, Allen
  • Harris, J.
  • Erickson, Ken
  • Hallahan, Charles

Abstract

With farm income at record, or near record levels, the overall agricultural production sector has fared well. However, in the current economic climate, instability and volatility in certain agricultural input markets caused by the U.S. macro-economy has put increased pressure on some sub-sectors of the agricultural economy. This paper analyzes the probability of default for USDA Agriculture Resource Management Survey (ARMS) farm operator households over time using a synthetic credit rating model. The probability of default was estimated for each ARMS farm sampled. The farms are classified according to farm type, gross sales class and by region to assess the financial health of each sector, Results indicate that the financial sector at the end of 2010 was exceptionally strong, although there are still certain farms that are vulnerable.

Suggested Citation

  • Brewer, Brady & Wilson, Christine & Featherstone, Allen & Harris, J. & Erickson, Ken & Hallahan, Charles, 2012. "Measuring the Financial Health of U.S. Production Agriculture," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2012, pages 1-16.
  • Handle: RePEc:ags:jasfmr:190761
    DOI: 10.22004/ag.econ.190761
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/190761/files/376_Wilson.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Allen M. Featherstone & Laura M. Roessler & Peter J. Barry, 2006. "Determining the Probability of Default and Risk-Rating Class for Loans in the Seventh Farm Credit District Portfolio," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(1), pages 4-23.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Burns, Christopher & Tulman, Sarah & Harris, J. Michael, 2015. "Farm Financial Stress in a Changing Economic Environment: Simulating Credit Risk with New Imputed ARMS Data on Farm Debt," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205295, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jasfmr:190761. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/asfmrea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.