Factors Affecting Farm Loan Delinquency in the Southeast

Frederick Murdoch Quaye, Denis Nadolnyak and Valentina Hartarska ()

Research in Applied Economics, 2017, vol. 9, issue 4, 75-92

Abstract: This study examines the factors and behaviors that affect Southeast US farmers¡¯ ability to meet their loan repayment obligations within the stipulated loan term. The study uses a 10-year (2003-2012) pooled cross-sectional data from the USDA ARMS survey data (Phase III). A probit approach is used to regress delinquency against various borrower-specific, loan-specific, lender-specific, macroeconomic and climatic variables for the first part. The results show that farmers with larger farms, farmers with insurance, farmers with higher net income, farmers with smaller debt to asset ratio, farmers with single loans and those that take majority of their loans from sources apart from commercial banks are those that are less likely to be delinquent. Temperature and precipitation also affect outcomes, but by minute magnitudes.

Keywords: Farm Credit; Credit Delinquency; Climate; Agricultural Insurance; Southeast US (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.macrothink.org/journal/index.php/rae/article/view/12165 (application/pdf)
http://www.macrothink.org/journal/index.php/rae/article/view/12165 (text/html)

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: https://EconPapers.repec.org/RePEc:mth:raee88:v:9:y:2017:i:4:p:75-92

Access Statistics for this article

Research in Applied Economics is currently edited by Amy Li

More articles in Research in Applied Economics from Macrothink Institute
Bibliographic data for series maintained by Technical Support Office ( this e-mail address is bad, please contact ).