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Factors Influencing Farmers’ Preferences for Lender Attributes

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  • Farley, Travis A.
  • Ellinger, Paul N.

Abstract

Data from a survey of Midwest producers are used to examine the credit-source decisions of farm borrowers. The lender attributes preferred by producers are identified in terms of their importance in selecting credit providers. The influence of farm business information on farmers’ interest rate sensitivity and loyalty is investigated. Regression results indicate that patrons of the Farm Credit System are more likely to be highly price-sensitive. Furthermore, the likelihood for strong borrower loyalty is found to be higher for smaller, less leveraged, and more tenured farms and by those who source financing from bank institutions.

Suggested Citation

  • Farley, Travis A. & Ellinger, Paul N., 2006. "Factors Influencing Farmers’ Preferences for Lender Attributes," 2006 Agricultural and Rural Finance Markets in Transition, October 2-3, 2006, Washington, DC 133080, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    • Handle: RePEc:ags:nc2006:133080
    DOI: 10.22004/ag.econ.133080
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    References listed on IDEAS

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