IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v8y1992i6p517-536.html
   My bibliography  Save this article

Consistency of credit evaluations at agricultural banks

Author

Listed:
  • Paul N. Ellinger

    (Department of Agricultural Economics, Texas A&M University)

  • Nate S. Splett

    (Department of Agricultural Economics at the University of Illinois at Urbana-Champaign)

  • Peter J. Barry

    (Department of Agricultural Economics at the University of Illinois at Urbana-Champaign)

Abstract

Commercial banks are using more comprehensive and formal methods to evaluate agricultural producers. This study reports the characteristics and performance of 87 credit scoring models currently in use by lenders. True product-moment and rank correlations are used to measure consistency among the models. The results of this studs underscore the continuing lack of a uniform model or models for lenders to use in evaluating the creditworthiness of agricultural borrowers. The relatively high disparity among the systems now in place suggest informational deficiencies in this aspect of rural credit markets, and the need for further interchange among lenders, borrowers and analysts about the properties of credit scoring models. © 1992 John Wiley & Sons, Inc.

Suggested Citation

  • Paul N. Ellinger & Nate S. Splett & Peter J. Barry, 1992. "Consistency of credit evaluations at agricultural banks," Agribusiness, John Wiley & Sons, Ltd., vol. 8(6), pages 517-536.
    • Handle: RePEc:wly:agribz:v:8:y:1992:i:6:p:517-536
    DOI: 10.1002/1520-6297(199211)8:6<517::AID-AGR2720080604>3.0.CO;2-E
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Hardy, William E. & Weed, Johno B., 1980. "Objective Evaluation for Agricultural Lending," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 12(1), pages 159-164, July.
    2. Hardy, William E., Jr. & Weed, Johno B., 1980. "Objective Evaluation For Agricultural Lending," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(1), pages 1-6, July.
    3. Cole R. Gustafson, 1989. "Credit Evaluation: Monitoring the Financial Health of Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(5), pages 1145-1151.
    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. Bard, Sharon K. & Barry, Peter J., 2000. "Developing A Scale For Assessing Risk Attitudes Of Agricultural Decision Makers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(1), pages 1-17.
    2. Davidova, Sophia & Latruffe, Laure & Ratinger, Tomas, 2005. "Performance of Different Institutional Units in the Czech Republic and the Role of External Financing," 94th Seminar, April 9-10, 2005, Ashford, UK 24421, European Association of Agricultural Economists.
    3. repec:ebl:ecbull:v:17:y:2005:i:9:p:1-11 is not listed on IDEAS
    4. repec:ebl:ecbull:v:17:y:2006:i:3:p:1-8 is not listed on IDEAS

    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. Babetskaya, Lyubov, 2001. "Enhancing The Performance Of Risk-Rating Models At Community Banks," 2001 Annual meeting, August 5-8, Chicago, IL 20690, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Novak, Michael P. & LaDue, Eddy L., 1999. "Application Of Recursive Partitioning To Agricultural Credit Scoring," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(1), pages 1-14, April.
    3. Novak, Michael P. & LaDue, Eddy L., 1997. "Introducing Recursive Partitioning To Agricultural Credit Scoring," Working Papers 127878, Cornell University, Department of Applied Economics and Management.
    4. Buffier, B.D. & Metternick-Jones, M.A., 1995. "Income Equalisation Deposits: Enhancing Farm Viability," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(01), pages 1-9, April.
    5. Pederson, Glenn D. & Rao, Ananth & Boehlje, Michael, 1990. "Analysis Of Loan Settlements And Restructured Loan Performance," Staff Papers 13257, University of Minnesota, Department of Applied Economics.
    6. Barry, Peter J. & Ellinger, Paul N., 1989. "Credit Scoring, Loan Pricing, And Farm Business Performance," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-11, July.
    7. Sanjay J. Bhayani & Butalal Ajmera, 2011. "A Study on Performance Evaluation of Dinesh Mills Ltd," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 2(6), pages 114-123, September.
    8. William E. Hardy & John L. Adrian, 1985. "A linear programming alternative to discriminant analysis in credit scoring," Agribusiness, John Wiley & Sons, Ltd., vol. 1(4), pages 285-292.
    9. de Jager, Fritz & Swanepoel, Vernon, 1994. "Factors Associated With Farm Financial Failure In The Northern Springbok Flats," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(4), December.
    10. Otima, Ruth M. A., 1994. "Predicting loan repayment performance: a case of Kenyan farm borrowers," ISU General Staff Papers 1994010108000018175, Iowa State University, Department of Economics.
    11. Gustafson, Cole R. & Crane, Laurence M. & Fischer, William R., 1995. "Agronomic, Economic, and Demographic Characteristics of Crop Farms in the Great Plains and Corn Belt," Agricultural Economics Reports 23221, North Dakota State University, Department of Agribusiness and Applied Economics.
    12. Mattia Iotti & Giuseppe Bonazzi, 2018. "Analysis of the Risk of Bankruptcy of Tomato Processing Companies Operating in the Inter-Regional Interprofessional Organization “OI Pomodoro da Industria Nord Italia”," Sustainability, MDPI, vol. 10(4), pages 1-23, March.
    13. Hardy, William E., Jr. & Spurlock, Stanley R. & Parrish, Donnie R. & Benoist, Lee A., 1987. "An Analysis Of Factors That Affect The Quality Of Federal Land Bank Loans," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(2), pages 1-8, December.
    14. Mário Santiago Céu & Raquel Medeiros Gaspar, 2022. "Vegetative cycle and bankruptcy predictors of agricultural firms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(12), pages 445-454.
    15. Geoffroy Enjolras & Philippe Madiès, 2020. "The role of bank analysts and scores in the prediction of financial distress: Evidence from French farms," Economics Bulletin, AccessEcon, vol. 40(4), pages 2978-2993.
    16. Johannes I. F. Henning & Henry Jordaan, 2016. "Determinants of Financial Sustainability for Farm Credit Applications—A Delphi Study," Sustainability, MDPI, vol. 8(1), pages 1-15, January.
    17. Ahmed, Anwar & Kennedy, John O.S., 1991. "The Effect of Credit Liberalization on Small-Farm Households: The Case of Bangladesh," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145719, Australian Agricultural and Resource Economics Society.
    18. Fiechter, Chad M. & Miller, Noah J. & Ifft, Jennifer & Nelson, Blaine, 2024. "Farm Characteristics and Cost of Borrowing," 2024 Annual Meeting, July 28-30, New Orleans, LA 343924, Agricultural and Applied Economics Association.
    19. Ahrendsen, Bruce L., 2012. "The Global Financial Crisis: Implications For Capital To Agribusiness," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 6(1-2), pages 1-4, September.
    20. Enjolras, Geoffroy & Madiès, Philippe, 2017. "The determinants of financial distress in French farms: Analysts versus Algorithms," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259168, Agricultural and Applied Economics Association.

    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:wly:agribz:v:8:y:1992:i:6:p:517-536. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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.