IDEAS home Printed from https://ideas.repec.org/a/cup/jagaec/v12y1980i02p25-29_01.html
   My bibliography  Save this article

Some Evidence on the Relationship Between Loan Insurance and the Supply of Agricultural Credit From Commercial Banks

Author

Listed:
  • Hatch, L. Upton
  • Musser, Wesley N.

Abstract

Insured farm loans have evolved to be an important component of the federal role in the agricultural credit subsector. Currently, agricultural credit is supplied by three sets of institutions: (1) private firms and individuals, (2) the quasiprivate cooperative Farm Credit System, and (3) the federal public programs of the Farmers Home Administration (FmHA) and Small Business Administration. Statuatory authority currently limits federal programs to a residual role of lending to borrowers who cannot receive credit from the other segments. Though a large component of public programs consists of emergency loans in areas of economic disaster, the FmHA also makes farm operating and real estate loans to farmers who meet the statuatory requirements. The source of funds for some FmHA loans is federal appropriations and money market certificates. However, guaranteed loans have become an important component of FmHA programs. These loans are made in cooperation with other agricultural finance agencies. The public agency insures or guarantees repayment of the loan. The cooperating firm negotiates the loan and provides the funds. Usually the interest payment is below the current market interest rate structure.

Suggested Citation

  • Hatch, L. Upton & Musser, Wesley N., 1980. "Some Evidence on the Relationship Between Loan Insurance and the Supply of Agricultural Credit From Commercial Banks," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 12(2), pages 25-29, December.
    • Handle: RePEc:cup:jagaec:v:12:y:1980:i:02:p:25-29_01
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0081305200015570/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lindon J. Robison & Peter J. Barry, 1977. "Portfolio Adjustments: An Application to Rural Banking," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(2), pages 311-320.
    2. Roe, Terry L. & Nygaard, David F., 1979. "Subjective Production Function Parameters And Risk: Wheat Production In Tunisia," Staff Papers 13900, University of Minnesota, Department of Applied Economics.
    3. Musser, Wesley N. & Marable, Ulysses, Jr., 1976. "The Impact Of Energy Prices On Optimum Machinery Size And The Structure Of Agriculture: A Georgia Example," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 8(01), pages 1-7, July.
    4. Michael Boehlje & Duane G. Harris & James Hoskins, 1979. "A Modeling Approach to Flows of Funds in Localized Financial Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 145-150.
    5. Peter J. Barry, 1978. "Rural Banks and Farm Loan Participation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 214-224.
    6. Kenneth R. Krause & Leonard R. Kyle, 1970. "Economic Factors Underlying the Incidence of Large Farming Units: The Current Situation and Probable Trends," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(5), pages 748-761.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hu, Bin & Hu, Yan-Ping, 2024. "A pricing model system for small and micro loan insurance considering limited claims," International Review of Financial Analysis, Elsevier, vol. 93(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tew, Bernard V. & Spurlock, Stan & Musser, Wesley N. & Miller, Bill R., 1980. "Some Evidence on Pecuniary Economies of Size for Farm Firms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 12(1), pages 151-154, July.
    2. Chase Econometric Associates for the Economic Development Division, 1981. "Regional Financial And Monetary Policy Analysis Model," Staff Reports 276719, United States Department of Agriculture, Economic Research Service.
    3. Pagoulatos, Angelos & Timmons, John F., 1977. "Alternative Scenarios Of Energy Use In U.S. Crop Production," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 9(2), pages 1-8, December.
    4. Kliebenstein, James B. & Farthing, Douglas C., 1979. "Impacts of Fuel Pricing and Non-Price Allocation Scenarios On High and Low Risk Crop Producers," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278181, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Brake, John R. & Melichar, Emanuel, 1977. "Agricultural Finance and Capital Markets," A Survey of Agricultural Economics Literature, Volume 1: Traditional Fields of Agricultural Economics 1940s to 1970s,, Agricultural and Applied Economics Association.
    6. Robison, Lindon J. & King, Robert J., 1978. "Specification of Micro Risk Models for Farm Management and Policy Research," Agricultural Economic Report Series 201245, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Robison, Lindon & Carman, Garth, 1979. "Aggregate Risk Response Models And Market Equilibrium," Risk Management in Agriculture: Behavioral, Managerial, and Policy Issues, January 25-26, 1979, San Francisco, California 271467, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    8. Kliebenstein, James B. & Chavas, Jean-Paul, 1977. "Adjustments of Midwest Grain Farm Businesses in Response to Increases in Petroleum Energy Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 9(2), pages 143-148, December.
    9. Auansakul, Aroon, 1980. "Scale Economies on Peanut-Rice Farms in Northeast Thailand," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 278940, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Halter, A.N. & Mason, Robert, 1978. "Utility Measurement For Those Who Need To Know," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 3(2), pages 1-12, December.
    11. Carl R. Zulauf & Kevin King, 1985. "Input purchasing advantages associated with farm size," Agribusiness, John Wiley & Sons, Ltd., vol. 1(1), pages 45-52.
    12. Petrick, Martin & Ditges, C. Markus, 2000. "Risk in agriculture as impediment to rural lending: the case of North-Western Kazakhstan," IAMO Discussion Papers 24, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    13. Jensen, Harald R., 1977. "PART I. Farm Management and Production Economics, 1946-70," AAEA Monographs, Agricultural and Applied Economics Association, number 337213, March.
    14. Meyer, Jack & Robinson, Lindon J., 1986. "A Consistency Condition For Expected Utilty And Mean Variance Analysis," Staff Paper Series 292725, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Goss, Kevin F. & Rodefeld, Richard D. & Buttel, Frederick H., 1979. "The Political Economy of Class Structure in U.S. Agriculture: A Theoretical Outline," AE & RS Research Reports 257688, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.
    16. Day, Lee M., 1981. "Research And The Family Farm: Implications For Agricultural Economics Research," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279246, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Brake, John R. & Melichar, Emanuel, 1977. "PART VI. Agricultural Finance and Capital Markets," AAEA Monographs, Agricultural and Applied Economics Association, number 337218, March.
    18. Robison, Lindon J. & Abkin, Michael H., 1981. "Theoretical and Practical Models for Investment and Disinvestment Decision Making Under Uncertainty in the Energy Supply Industry," Agricultural Economic Report Series 201288, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    19. Lanier, Eleanor B., 1972. "Economics of Agriculture: Reports and Publications Issued or Sponsored by USDA's Economic Research Service, July 1970-June 1971," Miscellaneous Publications 321803, United States Department of Agriculture, Economic Research Service.
    20. Reimund, Donn A. & Moore, Charles V. & Martin, J. Rod, 1977. "Factors Affecting Structural Change In Agricultural Subsectors: Implications For Research," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 9(01), pages 1-9, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jagaec:v:12:y:1980:i:02:p:25-29_01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/aae .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.