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Explaining Regional Demand for Federal Farm Credit Programs: An Ordinal Probit Approach

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  • Dodson, Charles B.
  • Koenig, Steven R.

Abstract

Demand for federally subsidized farm credit varies regionally, with farm borrowers in some regions very dependent on USDA credit programs. Counties are grouped based on their level of demand for Farm Service Agency (FSA) direct farm ownership (FO) and farm operating loans (OL). Ordinal probit techniques are applied to analyze factors influencing county-level variation in the use of the loan programs. Results suggest that counties with the highest level of demand are more likely to have a Farm Credit System branch office, are more likely to be dependent on farming, have a greater share of farms owing debt, and have fewer guaranteed FSA borrowers and racial and ethnic minorities.

Suggested Citation

  • Dodson, Charles B. & Koenig, Steven R., 2001. "Explaining Regional Demand for Federal Farm Credit Programs: An Ordinal Probit Approach," 2001 Annual meeting, August 5-8, Chicago, IL 20571, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20571
    DOI: 10.22004/ag.econ.20571
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    References listed on IDEAS

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    1. Calum G. Turvey & Alfons Weersink, 1997. "Credit Risk and the Demand for Agricultural Loans," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 45(3), pages 201-217, November.
    2. Dodson, Charles B. & Koenig, Steven R., 1999. "Farm Service Agency Credit Delivery To Different Classes Of Borrowers," 1999 Regional Committee NC-221, 1999, Mississauga, Ontario, Canada 132359, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    3. Patrick J. Sullivan & William M. Herr, 1990. "The Effects of FmHa Guaranteed Farm Loans on Rural Credit Markets," The Review of Regional Studies, Southern Regional Science Association, vol. 20(2), pages 50-59, Spring.
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    Cited by:

    1. Koenig, Steven R. & Dodson, Charles B., 2001. "Explaining Regional Demand for USDA Direct Farm Loan Programs, 1995-99," 2001 Regional Committee NC-221, October 1-2, 2001, McLean, Virginia 132403, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    2. Ashlock, Tara & Rimal, Arbindra, 2004. "Explanation Of Variation In Demand For Farm Credit In Missouri," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34674, Southern Agricultural Economics Association.

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