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Savings and Investments of North Dakota Farmers

Author

Listed:
  • Gustafson, Cole R.
  • Chama, Sydney L.

Abstract

Off-farm financial investments, such as stocks, bonds, mutual funds, and certificates of deposit, can offer farmers significant opportunities for diversification. Moreover, deregulation of financial markets in the 1980s enhanced the ability of farmers to invest in these financial assets. This study reports the results of a mail survey to 473 North Dakota farmers to identify the type and size of financial assets these farmers hold, their geographic placement, and their motives for investment. The 119 North Dakota farmers who responded to this survey had not taken advantage of the financial innovations deregulation that financial markets afford. Their investments were concentrated in local savings accounts, checking accounts, and farm real estate. Few respondents had investments outside the state. Less than a third of the respondents held mutual funds, government securities, or common stocks. Nearly all of the respondents managed their own investment portfolios and were concerned primarily with the yield and safety of financial assets. The respondents saved primarily for emergency and retirement. v

Suggested Citation

  • Gustafson, Cole R. & Chama, Sydney L., 1992. "Savings and Investments of North Dakota Farmers," Agricultural Economics Miscellaneous Reports 51171, North Dakota State University, Department of Agribusiness and Applied Economics.
    • Handle: RePEc:ags:nddmrs:51171
    DOI: 10.22004/ag.econ.51171
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    File URL: https://ageconsearch.umn.edu/record/51171/files/No.166.pdf
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    References listed on IDEAS

    as
    1. Peter J. Barry, 1981. "Impacts of Regulatory Change on Financial Markets for Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(5), pages 905-912.
    2. Monke, James D. & Boehlje, Michael & Pederson, Glenn D., 1992. "FARM RETURNS: They Measure Up to Returns To Other Investments," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 7(01), pages 1-3.
    3. Bruce Bjornson & Robert Innes, 1992. "Another Look at Returns to Agricultural and Nonagricultural Assets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 109-119.
    4. Peter J. Barry & Freddie L. Barnard, 1985. "Interaction Effects on Rural Financial Intermediaries of Financial Stress and Deregulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(5), pages 1191-1195.
    5. Scott H. Irwin & D. Lynn Forster & Bruce J. Sherrick, 1988. "Returns to Farm Real Estate Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 580-587.
    6. John B. Penson, 1972. "Demand for Financial Assets in the Farm Sector: A Portfolio Balance Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(2), pages 163-174.
    7. Cole R. Gustafson & Elizabeth Nielsen & Mitchell J. Morehart, 1990. "Comparison of the Financial Results of Record-Keeping and Average Farms in North Dakota," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 12(2), pages 165-172.
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