Transition Probability Approach in the Evaluation of Relative Financial Strength and Endurance of Farm Service Borrowers under Recessionary Conditions

Hofner Rusiana, Brady Brewer, Cesar Escalante (cescalan@uga.edu) and Charles Dodson

No 229813, 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas from Southern Agricultural Economics Association

Abstract: This paper examines the relative financial strength and endurance of several paired classes of farmers according to business maturity (beginning versus mature farm businesses), farm operators’ age and experience (young versus older, more experienced farm operators), and farm size (small versus large farm businesses) by utilizing transition probability approach. Results show that the financial stress resulting from the late 2000s recession did not significantly influence the financial vitality of farms in general, regardless of the farm types. The financial strength of small farms, young farm operators, and beginning farms during the recessionary period remained at favorable levels, although their performances were lower to their counterparts.

Keywords: Agribusiness; Agricultural Finance (search for similar items in EconPapers)
Pages: 28
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea16:229813

DOI: 10.22004/ag.econ.229813

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