IDEAS home Printed from https://ideas.repec.org/a/ags/remaae/12523.html
   My bibliography  Save this article

The Influence of Credit on Farm Growth

Author

Listed:
  • Ockwell, Anthony P.
  • Batterham, Robert L.

Abstract

This study was based on the hypothesis that lenders to the rural sector have the potential to affect the rate of agricultural adjustment directly via capital formation. Multi-period linear programming models were developed to quantify the effects of lender policy on farm growth for wheat growing, dairy and sheep properties. Three basic models were used to represent different farm management types for each industry group of models. The models included the production, marketing, taxation, consumption and investment subsystems of the farm. Emphasis in these models was focused on the financial linkages between these various subsystems. In particular, the models investigated the effects of increases in trading bank credit on farm growth.

Suggested Citation

  • Ockwell, Anthony P. & Batterham, Robert L., 1982. "The Influence of Credit on Farm Growth," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(03), pages 1-18, December.
    • Handle: RePEc:ags:remaae:12523
    DOI: 10.22004/ag.econ.12523
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/12523/files/50030247.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.12523?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Arthur H. Smith & William E. Martin, 1972. "Socioeconomic Behavior of Cattle Ranchers, with Implications for Rural Community Development in the West," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(2), pages 217-225.
    2. J.H.E. Taplin, 1966. "The Influence Of Working Capital On Farm Organization — How Appropriate Is A Linear Programming Analysis?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 10(1), pages 60-69, June.
    3. Michael D. Boehlje & T. Kelley White, 1969. "A Production-Investment Decision Model of Farm Firm Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(3), pages 546-563.
    4. repec:ags:agsaem:288652 is not listed on IDEAS
    5. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 44, pages 2343-2378, Elsevier.
    6. Ockwell, Anthony P. & Batterham, Robert L., 1980. "Nonprice Rationing Of Agricultural Credit By Two Trading Banks," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(3), pages 1-13, December.
    7. 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.
    8. 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.
    9. A.P. Ockwell & Robert L. Batterham, 1980. "Nonprice Rationing Of Agricultural Credit By Two Trading Banks," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(3), pages 183-195, December.
    10. Taplin, J.H.E., 1966. "The Influence Of Working Capital On Farm Organization - How Appropriate Is A Linear Programming Analysis?," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 10(01), pages 1-10, June.
    11. K. D. Cocks & H. O. Carter, 1968. "Micro Goal Functions and Economic Planning," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(2), pages 400-411.
    12. Renborg, Ulf, 1970. "Growth of the Agricultural Firm: Problems and Theories," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(02), pages 1-51, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Walker, Odell L. & Hardin, Mike L. & Mapp, Harry P., Jr. & Roush, Clint E., 1979. "Farm Growth And Estate Transfer In An Uncertain Environment," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 11(01), pages 1-12, July.
    2. Baker, C.B. & Barry, Peter J. & Lee, Warren F. & Olson, Carl E. & Hochman, Eithan & Rausser, Gordon S. & Kottke, Marvin W., "undated". "Economic Growth of the Agricultural Firm," Western Region Archives 260636, Western Region - Western Extension Directors Association (WEDA).
    3. Schnitkey, Gary D. & Taylor, C. Robert & Barry, Peter J., 1989. "Evaluating Farmland Investments Considering Dynamic Stochastic Returns And Farmland Prices," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(01), pages 1-14, July.
    4. Geoff W. Edwards, 1987. "Agricultural Policy Debate: A Survey," The Economic Record, The Economic Society of Australia, vol. 63(2), pages 129-143, June.
    5. Lowenberg-DeBoer, James & Boehlje, Michael, 1985. "Integration Of Production And Financial Theory In Analyzing Firm Behavior," 1985 Regional Committee NC-161, October 9-10, 1985, St. Louis, Missouri 140930, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    6. Johnson, Donald A. & Boehlje, Michael, 1983. "Managing Risk By Coordinating Investment, Marketing, And Production Strategies," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(2), pages 1-15, December.
    7. Brake, John R. & Melichar, Emanuel, 1977. "Agricultural Finance and Capital Markets," A Survey of Agricultural Economics Literature, Volume 1: Traditional Fields of Agricultural Economics 1940s to 1970s,, Agricultural and Applied Economics Association.
    8. Anastassiadis, Friederike & Mußhoff, Oliver, 2013. "Evaluating the role of financial flexibility in farmers' investment decisions using latent class analysis," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158707, Agricultural Economics Society.
    9. Patrick, George F., 1979. "Effects Of Debt Levels And Loan Arrangements On Farm Firm Survival And Growth," Risk Management in Agriculture: Behavioral, Managerial, and Policy Issues, January 25-26, 1979, San Francisco, California 271464, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    10. Anastassiadis, Friederike & Liebe, Ulf & Mußhoff, Oliver, 2015. "Financial Flexibility in agricultural investment decisions: A discrete choice experiment," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(01), pages 1-12.
    11. Weerawardane, Gayatri C., 1993. "Rationing in agricultural credit markets: evidence from Iowa farm operators," ISU General Staff Papers 1993010108000018158, Iowa State University, Department of Economics.
    12. Peter Bardsley & M. Harris, 1987. "An Approach To The Econometric Estimation Of Attitudes To Risk In Agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 31(2), pages 112-126, August.
    13. 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.
    14. Barry, P. J., 1971. "Financial Analysis of Expansion Alternatives for Cash Grain Farms in Ontario," Working Papers 244671, University of Guelph, Department of Food, Agricultural and Resource Economics.
    15. Jensen, Harald R., 1977. "PART I. Farm Management and Production Economics, 1946-70," AAEA Monographs, Agricultural and Applied Economics Association, number 337213, May.
    16. Barry, Peter J. & Hopkin, John A., 1972. "Financial Intermediation In Agriculture: A Suggested Analytical Model," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 4(01), pages 1-5, July.
    17. Anastassiadis, F. & Liebe, U. & Mußhoff, O., . "Finanzielle Flexibilität in landwirtschaftlichen Investitionsentscheidungen: Ein Discrete Experiment," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48.
    18. Harris, Kim & Baker, Chester B., 1985. "Eliciting Liquidity Preferences For Cash And Intermediate Credit Reserves From Central Illinois Farmers," 1985 Regional Committee NC-161, October 9-10, 1985, St. Louis, Missouri 140934, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    19. Brake, John R. & Melichar, Emanuel, 1977. "PART VI. Agricultural Finance and Capital Markets," AAEA Monographs, Agricultural and Applied Economics Association, number 337218, May.
    20. Sonka, Steven T. & Dixon, Bruce L., 1979. "Determinants Of Lender Response To Short-Term Credit Needs Of Small Commercial Farmers," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 11(01), pages 1-5, July.

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    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:remaae:12523. See general information about how to correct material in RePEc.

    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 bibliographic 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.

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

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.