Determinants of Lender Response to Short-Term Credit Needs of Small Commercial Farmers

Steven T. Sonka and Bruce L. Dixon

Journal of Agricultural and Applied Economics, 1979, vol. 11, issue 1, 133-137

Abstract: Credit availability and use have been identified as crucial factors affecting success or failure for many farm operations [1, 2]. The increased level of uncertainty affecting agriculture in the 1970s has intensified the importance of credit use by farmers. Indeed, maintaining financial liquidity often is cited as a strategy to counter increasing farm risks [6, 12]. Farmers view credit as a crucial variable and, as shown by Barry and Baker [3], farmer borrowing patterns can be related to the level of unused credit those farmers maintain.

Date: 1979
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