Commercial Bank Usage of the Farm Service Agency Interest Assistance Program

Bruce Ahrendsen, Bruce L. Dixon, Chris Bacchus and Latisha A. Settlage

No 132773, 2006 Agricultural and Rural Finance Markets in Transition, October 2-3, 2006, Washington, DC from Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition

Abstract: The Farm Service Agency’s (FSA) interest assistance interest assistance program allows lenders to enter into an agreement with FSA to subsidize a guaranteed farm operating loan by reducing the interest rate charged to the borrower by up to four percentage points. With fiscal 1997-2003 data, an incidental truncation model framework is used to analyze: 1) commercial bank usage of the program; and 2) intensity of commercial bank usage. The results suggest bank characteristics, farm and non-farm financial characteristics, region, and time are important factors in determining bank usage of the interest assistance program and its intensity.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 24
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nc2006:132773

DOI: 10.22004/ag.econ.132773

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