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Gender Bias Claims in Farm Service Agency’s Lending Decisions

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  • Escalante, Cesar L.
  • Epperson, James E.
  • Raghunathan, Uthra

Abstract

This study analyzes the courts’ denial of women farmers’ motion for class-action certification of their lawsuits alleging gender discrimination in Farm Service Agency (FSA) lending decisions. The plaintiffs’ claim of “commonality” of circumstances in women farmers’ dealings with FSA is tested using a four-year sampling of Georgia FSA loan applications. The econometric framework has been developed after accounting for the separability of loan approval and amount decisions, as well as endogeneity issues through instrumental variable estimation. This study’s results do not produce overwhelming evidence of gender bias in FSA loan approval decisions and in favor of the “commonality” argument among Georgia FSA farm loan applicants.

Suggested Citation

  • Escalante, Cesar L. & Epperson, James E. & Raghunathan, Uthra, 2009. "Gender Bias Claims in Farm Service Agency’s Lending Decisions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(2), pages 1-18, August.
    • Handle: RePEc:ags:jlaare:54550
    DOI: 10.22004/ag.econ.54550
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    References listed on IDEAS

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    1. Escalante, Cesar L. & Brooks, Rodney L. & Epperson, James E. & Stegelin, Forrest E., 2006. "Credit Risk Assessment and Racial Minority Lending at the Farm Service Agency," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-15, April.
    2. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
    3. Jeffrey M. Lacker, 1995. "Neighborhoods and banking," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 13-38.
    4. Gustafson, Cole R. & Beyer, Ronald J. & Saxowsky, David M., 1991. "Credit Evaluation: Investigating the Decision Process of Agricultural Loan Officers," 1991 Regional Committee NC-161, September 23-24, 1991, St. Louis, Missouri 130940, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
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    Cited by:

    1. Dhakal, Chandra K. & Escalante, Cesar L., 2018. "Heterogeneity of Farm Loan Packaging Term Decisions: A Finite Mixture Model Approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 274118, Agricultural and Applied Economics Association.
    2. Jennifer A. Ball, 2020. "Women farmers in developed countries: a literature review," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(1), pages 147-160, March.
    3. Mann, Stefan & Stefan, Petrica, 2018. "Wine Farms between Specialisation and Diversification – Empirical Insights from Switzerland and Romania," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 67(3), September.
    4. Tiken Das & Pradyut Guha & Diganta Das, 2021. "Do the Heterogeneous Determinants of Repayment Affect Differently across Borrowers of Diverse Credit Sources in Rural Assam? A Double Hurdle Approach," Journal of Development Policy and Practice, , vol. 6(2), pages 188-209, July.
    5. Cesar L. Escalante & Penghui Gao & William Secor, 2024. "Loan packaging decisions for beginning African American and other socially disadvantaged farmers," American Journal of Economics and Sociology, Wiley Blackwell, vol. 83(1), pages 109-126, January.

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