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Community Banks and Agricultural Sales in Rural States

Author

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  • Jeffrey K. O'Hara

    (USDA)

Abstract

The consolidation of the commercial banking sector may influence the viability of farms in accessing credit. I estimate the influence that changes in the level of deposits in community banks had on total agricultural sales and direct-to-consumer agricultural sales of local food between 2002 and 2012 in a five-state region containing North Dakota, South Dakota, Minnesota, Wyoming, and Montana. I find that changes in community bank deposits had a positive impact on changes in direct-to-consumer agricultural sales of local foods, while total agricultural sales may not be impacted by changes in community bank deposits.

Suggested Citation

  • Jeffrey K. O'Hara, 2017. "Community Banks and Agricultural Sales in Rural States," The Review of Regional Studies, Southern Regional Science Association, vol. 47(2), pages 137-152, Summer.
    • Handle: RePEc:rre:publsh:v47:y:2017:i:2:p:137-152
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    More about this item

    Keywords

    community banks; local foods; agricultural finance;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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