Farm Lender Asset and Funding Decisions: A Micro-Model Application

Ananth Rao, Glenn D. Pederson and Michael D. Boehlje

Review of Agricultural Economics, 1994, vol. 16, issue 3, 399-412

Abstract: A model of loan asset allocation and funding decisions is developed and applied to a regional Farm Credit Bank (FCB) using time-series data from 1970 to 1990. Estimated loan rate equations indicate that expected loan prepayment and default are significant sources of risk for which the FCB charged interest rate premiums. Theoretically, and practically, these rate premiums impart a positive slope to the bank's loan supply schedule. Loan supply elasticities and interest rate premiums are estimated. Long-term loan volume is responsive to changing loan interest rates, while short-term loan volume is not.

Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.2307/1349699 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:revage:v:16:y:1994:i:3:p:399-412.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

More articles in Review of Agricultural Economics from Agricultural and Applied Economics Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ( this e-mail address is bad, please contact ) and Christopher F. Baum ().