Governmental Farm Credit and Tenancy

The Impact of Farm Credit in Pakistan

Both informal and formal loans matter in agriculture. However, formal lenders provide much more production loans than informal lenders, often at a cost (mostly loan default cost) higher than what they can recover. For example, the Agricultural Development Bank of Pakistan (ADBP), providing about 90 percent of formal loans in rural areas, incurs high loan default costs. Yet, like other governmen...

Measuring efficiency of the Farm Credit System

A Label Change for Farm Credit

Those persons employed in this nation's agribusiness industry can ill afford to ignore the balance sheet for U.S. agriculture. Preliminary estimates for 1983 suggest that production agriculture currently functions on a base of debt capital totaling $215 billion. While total assets employed have, since 1980, remained almost constant at about $1,000 billion, our farmers' equity position has actua...

Measurement of Farm Credit Risk: SUR Model and Simulation Approach

The study addresses problems in measuring credit risk under the structure model, and then proposes a seemingly unrelated regression model (SUR) to predict farms’ ability in meeting their current and anticipated obligations in the next 12 months. The empirical model accounts for both the dependence structure and the dynamic feature of the structure model, and is used for estimating asset correla...

Interlinked Credit and Farm Intensification: Evidence from Kenya