Effects of Production and Other Factors on Hungarian Agricultural Farm’s Creditability

Jozsef Toth (), Gábor Kemény and Kristóf Tóth
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Gábor Kemény: Research Institute of Agricultural Economics
Kristóf Tóth: Research Institute of Agricultural Economics

from University of Primorska, Faculty of Management Koper

Abstract: In this paper we estimate the impact of different factors on creditability of agricultural farms. According to the literature the collateral (tangible assets), the farm size, productivity, and subsidies should have significant effects on farm loans. We use data from the Hungarian Farm Accountancy Data Network to test our two hypotheses and theoretical assumptions for the period 2001-2010. Because of using panel data, we do our estimations using fixed effects econometrics model to test our assumptions. The results indicate that the chosen factors have significant influence on total liabilities and short- and long-term loans as well. With specially interest of subsidies the growing level of supports decrease the need of other financial tools. At output factors (inclusive farm size) have significant and positive effect, same as collateral (tangible assets).

Keywords: credit; output; collateral; subsidies; farm size (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:mgt:micp12:1021-1028

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