Farm credit member-borrowers' preferences for patronage payments

Brian Briggeman and Quatie Jorgensen

Agricultural Finance Review, 2009, vol. 69, issue 1, pages 88-97

Abstract: Purpose – Many associations in the Farm Credit System, which are financial cooperatives, pay their member-borrowers a cash patronage payment based on the amount of loan volume with the association. In today's competitive lending environment, some Farm Credit associations have offered lower interest rates on new loans but these new member-borrowers have to forgo their cash patronage payment to receive this new, lower-interest rate loan. The purpose of this paper is to identify Farm Credit member-borrowers' preferences for patronage refunds received as a cash payment versus lower fixed real estate interest rates. Design/methodology/approach – Preferences for patronage refunds or lower fixed interest rates are elicited from Farm Credit Services of East Central Oklahoma member-borrowers via conjoint analysis. Findings – Results show that member-borrowers strongly prefer patronage refunds compared to lower fixed interest rates. Originality/value – This paper fulfills a need to better understand patronage refund programs within the Farm Credit System.

Keywords: Credit; Customer satisfaction; Customer surveys; Farms; Financial management; United States of America (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.emeraldinsight.com/Insight/viewContentI ... le&contentId=1793824 (text/html)
Cannot be freely downloaded

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eme:afrpps:v:69:y:2009:i:1:p:88-97

Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emeraldinsight.com/afr.htm

Access Statistics for this article

Agricultural Finance Review is edited by Professor Calum G. Turvey

More articles in Agricultural Finance Review from Emerald Group Publishing
Series data maintained by Chris Harris ().