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Capital Structure in Modern American Agriculture: Evidence from a National Survey

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  • Moss, Charles B.
  • Mishra, Ashok K.
  • Uematsu, Hiroki

Abstract

Factors affecting the level of farm and household debt have been of sporadic concern in agricultural economic literature. In the Mid 1980s, farm business and household debt was hypothesized to contribute to the farm financial crisis. This paper examines factors affecting the probability of farm business and household debt and the level of that debt. The results indicate that farm debt is a decreasing function of operator age, importance of government payments, and significance of cash grain crops, but an increasing function of the size of the farm firm.

Suggested Citation

  • Moss, Charles B. & Mishra, Ashok K. & Uematsu, Hiroki, 2012. "Capital Structure in Modern American Agriculture: Evidence from a National Survey," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124727, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea12:124727
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    File URL: http://purl.umn.edu/124727
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    References listed on IDEAS

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    4. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
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    6. Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-592, July.
    7. McBride, William D. & El-Osta, Hisham S., 2002. "Impacts Of The Adoption Of Genetically Engineered Crops On Farm Financial Performance," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), April.
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    Cited by:

    1. Pedersen, Michael Friis, 2015. "Capital Structure in Agricultural Sole Proprietorships," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205412, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    2. Hutchings, T.R., 2013. "Financial risk on dryland farms in south-eastern Australia," Dissertations-Doctoral 204434, AgEcon Search.

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    Keywords

    Agricultural Finance; Consumer/Household Economics;

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