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Impact Of Farm Indebtedness On Farm Income And Survival

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  • Sawani, Mustafa A.
  • Finley, Robert M.
  • Kliebenstein, James B.

Abstract

The ever increasing capital requirements in agriculture, along with increasing debt levels and fluctuating interest rates, have increased the intensity of cash flow problems and financial crisis. This paper evaluates effects of debt level on farm income level, enterprise mix and farm survival. Farms with debt of 50 percent or more had negative capital accumulation even with interest rates of 10 percent.

Suggested Citation

  • Sawani, Mustafa A. & Finley, Robert M. & Kliebenstein, James B., 1986. "Impact Of Farm Indebtedness On Farm Income And Survival," 1986 Annual Meeting, July 27-30, Reno, Nevada 278069, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea86:278069
    DOI: 10.22004/ag.econ.278069
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    References listed on IDEAS

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    1. Laurel D. Loftsgard & Earl O. Heady, 1959. "Application of Dynamic Programming Models for Optimum Farm and Home Plans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 41(1), pages 51-62.
    2. Michael D. Boehlje & T. Kelley White, 1969. "A Production-Investment Decision Model of Farm Firm Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(3), pages 546-563.
    3. Oscar R. Burt & John R. Allison, 1963. "Farm Management Decisions With Dynamic Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(1), pages 121-136.
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    Keywords

    Agricultural Finance; Farm Management;

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