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Beef packing, beef processing, livestock slaughter, meatpacking costs, computer applications

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  • Herr, William

Abstract

Farmers Home Administration new farm loan activity has rapidly shifted from direct to guaranteed lending. This study determines how this change affects the farm sector and farm credit markets. Objective models constructed of these two alternative credit delivery modes indicate that a complete shift to guaranteed loans would exclude some low-income, low-risk borrowers who previously received direct loans and reduce the agency's role in the farm credit market. The study found that the guarantee program is the cost-effective choice, but this conclusion depends in part upon the elasticities of credit demand and supply. Welfare analyses show that borrowers and lenders are affected differently by the two kinds of credit programs. In order to minimize the deadweight loss to society, credit program selection must take into account the elasticity of farm credit demand and supply. The analysis also indicates that credit program selection depends upon the objectives of program.

Suggested Citation

  • Herr, William, 1991. "Beef packing, beef processing, livestock slaughter, meatpacking costs, computer applications," Staff Reports 278517, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278517
    DOI: 10.22004/ag.econ.278517
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    References listed on IDEAS

    as
    1. Farmers Home Administration, 1988. "A Brief History of Farmers Home Administration," USDA Miscellaneous 330079, United States Department of Agriculture.
    2. Hughes, Dean W. & Penson Jr., John B. & Bednarz, Curtis R., 1984. "Subsidized Credit And Investment In Agriculture: The Special Case Of Farm Real Estate," 1984 Annual Meeting, August 5-8, Ithaca, New York 279062, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Penner, Rudolph G & Silber, William L, 1973. "The Interaction Between Federal Credit Programs and the Impact on the Allocation of Credit," American Economic Review, American Economic Association, vol. 63(5), pages 838-852, December.
    4. Mehdian, Seyed & Herr, William McDaniel & Eberle, Phillip R. & Grabowski, Richard, 1988. "Toward An Appraisal Of The Fmha Farm Credit Program: A Case Study Of The Efficiency Of Borrowers In Southern Illinois," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(2), pages 1-7, December.
    5. Dean W. Hughes & John B. Penson & Curtis R. Bednarz, 1984. "Subsidized Credit and Investment in Agriculture: The Special Case of Farm Real Estate," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(5), pages 755-760.
    6. Lins, David A., 1972. "Determinants of Net Changes in Farm Real Estate Debt," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 24(01), pages 1-8, January.
    7. Lieblich, Mark S., 1984. "Issues In The Identification And Measurement Of Credit Subsidies," 1984 Regional Committee NC-161, October 31-November 1, 1984, St. Louis, Missouri 140857, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    8. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    9. Leon F. Hesser & G. Edward Schuh, 1963. "Factors Affecting the Supply of Farm Mortgage Credit," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(4), pages 839-849.
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