Multiple vs single lending relationships in the agricultural sector

2014 ◽  
Vol 74 (1) ◽  
pp. 55-68 ◽  
Author(s):  
Brady E. Brewer ◽  
Christine A. Wilson ◽  
Allen M. Featherstone ◽  
Michael R. Langemeier
Keyword(s):  
Design Methodology ◽  
Agricultural Sector ◽  
Farm Management ◽  
Risk Level ◽  
Content Type ◽  
Lending Relationships ◽  
Access To Credit ◽  
Level Data ◽  
Management Association ◽  
Lending Institutions

Purpose – The purpose of this paper is to examine the use of single vs multiple lenders by Kansas farms. Previous studies suggest that as the risk level of the firm changes, borrowers desire to enhance the probability of obtaining credit at the lowest possible cost may cause them to use multiple lenders. Design/methodology/approach – A model is adopted from the banking literature to describe farm behavior in obtaining credit from a single vs multiple lenders. Using farm-level data from the Kansas Farm Management Association, an empirical model analyzes how farm characteristics affect the number of lending relationships. A model is developed to analyze the number of lending relationships effect on the profitability of the farm. Findings – It is found that highly leveraged farms seek additional lending relationships supporting the theoretical model and that additional lending relationships correlate to a decrease in profitability. Roughly, 50 percent of Kansas farmers that borrow use a single lender. Roughly 48 percent use from two to four lenders, with the remaining 2 percent using more than four lenders. Originality/value – Provides empirical results to support developed theoretical framework on the number of lending institutions. This study helps understand factors correlated to a farmer's decision to use multiple lenders. Analyzing the number of lending relationships helps understand how farmers manage their debt to maintain access to credit when needed at the lowest possible cost.

Agripreneurship development: a strategy for revamping Nigeria’s economy from recession

2017 ◽  
Vol 8 (4) ◽  
pp. 474-483 ◽  
Author(s):  
Innocent Otache
Keyword(s):  
Economic Crisis ◽  
Design Methodology ◽  
Agricultural Sector ◽  
Content Type ◽  
Current Economic Crisis ◽  
Leadership Failure ◽  
Oil Sector ◽  
The Government ◽  
Creativity And Innovation ◽  
Practical Implications

Purpose The purpose of this paper is to explore agripreneurship development as a strategy for economic growth and development. Design/methodology/approach Though a few related literature were reviewed, this paper relies heavily on the author’s viewpoint regarding how Nigeria can grow and develop its economy through agripreneurship development. Findings The present economic challenges that Nigeria is facing are blamed on overdependence on the oil sector, bad governance, corruption, leadership failure, policy inconsistency, overdependence on imported goods and ostensible neglect of the agricultural sector. Also, policymakers, economic analysts and the government have advocated strongly for diversification of the economy. Besides, there is a consensus among scholars, economic analysts and policymakers that “agriculture is the answer.” Research limitations/implications This paper addresses specifically one sector of the economy – the agricultural sector. On the other hand, economic crisis needs to be addressed holistically by resolving specific issues that confront different sectors of the economy. Practical implications This paper has some insightful policy and practical implications for the Nigerian Government and Nigerians. The government and Nigerians need to take practical steps to grow and develop the economy. On the part of the government, apart from the need to transform the agricultural sector by allocating enough funds to it, the government should establish well-equipped agripreneurship development centers and organize periodically agripreneurship development programmes for the main purpose of training and developing both current and potential agripreneurs who will be able to apply today’s agricultural techniques and practices which involve a great deal of creativity and innovation for a successful agribusiness. The federal government should integrate agripreneurship education into Nigeria’s education system. Similarly, the Nigerian people, particularly the youths or graduates should be encouraged to choose agribusiness as a career. Originality/value While previous papers have offered different solutions to the current economic crisis that Nigeria is experiencing, ranging from economic to structural reforms, this paper differs significantly from others by recommending specifically agripreneurship development as a strategy for revamping Nigeria’s economy from its current recession. Moreover, there is a dearth of literature on agripreneurship and agripreneurship development. This paper therefore fills the literature gap.

Want to reduce the bullwhip? Measure it. Here’s how

2017 ◽  
Vol 22 (4) ◽  
pp. 297-304 ◽  
Author(s):  
Ming Jin ◽  
Nicole DeHoratius ◽  
Glen Schmidt
Keyword(s):  
Small Perturbation ◽  
Design Methodology ◽  
Bullwhip Effect ◽  
End Users ◽  
Social Implications ◽  
Content Type ◽  
Novel Approach ◽  
Level Data ◽  
Beer Game ◽  
Practical Implications

Purpose The popular “beer game” illustrates the bullwhip effect where a small perturbation in downstream demand can create wild swings in upstream product flows. The purpose of this paper is to present a methodical framework to measure the bullwhip effect and evaluate its impact. Design/methodology/approach This paper illustrates a framework using SKU-level data from an industry-leading manufacturer, its distributors, end-users and suppliers. Findings Firms benefit from tracking multiple intra-firm bullwhips and from tracking bullwhips pertinent to specific products, specific suppliers and specific customers. The framework presented in this paper enables managers to pinpoint bullwhip sources and mitigate bullwhip effects. Research limitations/implications This paper presents a framework for methodically measuring and tracking intra-firm and inter-firm bullwhips. Practical implications A disconnect exists between what is known and taught regarding the bullwhip effect and how it is actually tracked and managed in practice. This paper aims to reduce this gap. For the various products analyzed herein, the authors show how using this framework has the potential to reduce delivered product cost by 2 to 15 per cent. Social implications Properly managing the bullwhip leads to lower inventories and potentially lower product prices while simultaneously increasing firm profits. Originality/value This paper presents a novel approach to systematically tracking intra-firm bullwhips along with bullwhips specific to a given supplier or customer.

The rationale of part-time farming: empirical evidence from Norway

2017 ◽  
Vol 44 (1) ◽  
pp. 53-59 ◽  
Author(s):  
Klaus Mittenzwei ◽  
Stefan Mann
Keyword(s):  
Empirical Evidence ◽  
Household Income ◽  
Design Methodology ◽  
Farm Households ◽  
Apparent Contradiction ◽  
Content Type ◽  
Level Data ◽  
Part Time ◽  
On Farm ◽  
Practical Implications

Purpose Outside farming, pluriactivity is generally considered as undesirable, whereas agricultural economists tend to recommend part-time farming. This contradiction is to be solved. The paper aims to discuss this issue. Design/methodology/approach Linking tax-payer and statistical farm-level data from Norway, the authors tested how profitable part-time farming is for Norwegian farm households. Findings The analysis showed that concentrating on either working on-farm or off-farm generates a higher household income than combining the two. Practical implications Part-time farming may be a lifestyle decision, but apparently is not economically optimal for most farms. Originality/value The contribution solves an apparent contradiction between the discourses inside and outside agriculture.

scholarly journals Guarantees used in refundable financing of innovation in micro, small and medium-sized enterprises

2019 ◽  
Vol 16 (3) ◽  
pp. 253-268 ◽  
Author(s):  
Richard Cunha Schmidt ◽  
Micheline Gaia Hoffmann
Keyword(s):  
Financial Institutions ◽  
Design Methodology ◽  
Structured Interviews ◽  
Innovation Ecosystem ◽  
Content Type ◽  
Access To Credit ◽  
Regional Bank ◽  
Knowledge Intensive ◽  
The One ◽  
Practical Implications

Purpose Despite the increasing availability of financing programs for innovation, micro, small and medium-sized enterprises (MSMEs) often find it difficult to access credit for their projects. Among the reasons, the lack of the types of guarantees required by financial institutions stands out. Focused on this problem, in 2013, the Regional Bank for the Development of the Extreme South (BRDE) created a policy to stimulate innovation, making the required guarantees for financing operations of innovative companies more flexible: the BRDE Inova Program. This paper aims to analyze the guarantees used in the bank operations since the beginning of the program. Design/methodology/approach In the first stage of the research, the authors identified the guarantees used in each of the signed contracts, through a documentary survey. Next, semi-structured interviews showed the perceptions of the players involved in the innovation ecosystem of the state of Santa Catarina, regarding aspects related to the guarantees. Specifically, the authors investigated the following elements: strengths and limitations of the programs regarding access to credit for innovation; adequacy of existing guarantee mechanisms. To strengthen the conclusions, they used triangulated data collection in different stages. Findings The results showed that, on the one hand, the initiative helped BRDE to consolidate itself as the main financing agent of innovation in MSMEs; on the other hand, the need for traditional guarantees still plays a significant role for innovative MSMEs to access credit. Originality/value In addition to practical implications for the bank and other financing agents’ policies, this paper contributes to fill a gap in the literature on guarantee systems applied to the specificities of knowledge-intensive MSMEs.

Asymmetric relationships in networked agricultural innovation processes

2015 ◽  
Vol 117 (7) ◽  
pp. 1810-1825 ◽  
Author(s):  
Evelien Lambrecht ◽  
Bianka Kühne ◽  
Xavier Gellynck
Keyword(s):  
Design Methodology ◽  
Agricultural Sector ◽  
Empirical Work ◽  
Innovation Networks ◽  
Practical Relevance ◽  
Content Type ◽  
Depth Interviews ◽  
Innovation Processes ◽  
Practical Implications ◽  
Asymmetric Relationships

Purpose – In innovation networks, asymmetric relationships are both considered as an opportunity and a threat for the enhancement of innovation. The purpose of this paper is to investigate how much asymmetry Flemish farmers perceive in their relationships for innovation with colleagues, suppliers and buyers. Design/methodology/approach – In total, 86 farmers active in four different agricultural subsectors in Flanders were consulted, of which 38 via in-depth interviews and 48 in seven focus groups. Data were analysed using NVivo. Findings – The authors found that across subsectors, different players in innovation networks play different roles. Furthermore, the authors observed that the majority of farmers see their relationships more as a necessity for the farm to be able to function, than as an opportunity for innovation. If they collaborate for innovation, they often prefer symmetric relationships with similar companies on horizontal level. Vertical collaboration for innovation is not very popular in the sample. Practical implications – The findings suggest that farmers should take more actions to gain power in the chain and improve their skills with regards to negotiating with their suppliers or buyers. Furthermore, the authors found which characteristics of asymmetric relationships would foster the development of innovation processes. Originality/value – Empirical work studying the effects and impacts of asymmetric relationships for innovation from the SME’s perspective are still limited, especially in the agricultural sector. Furthermore, this sector is of practical relevance to study because the need for networking and innovation is very real.

scholarly journals A driving behavior model evaluation for UBI

2017 ◽  
Vol 1 (3) ◽  
pp. 223-236 ◽  
Author(s):  
Zhishuo Liu ◽  
Qianhui Shen ◽  
Jingmiao Ma
Keyword(s):  
Model Evaluation ◽  
Design Methodology ◽  
Driving Behavior ◽  
Risk Level ◽  
Behavior Model ◽  
Safe Driving ◽  
Content Type ◽  
Scoring Model

Purpose This paper aims to provide a driving behavior scoring model to decide the personalized automobile premium for each driver. Design/methodology/approach Driving behavior scoring model. Findings The driving behavior scoring model could effectively reflect the risk level of driver’s safe driving. Originality/value A driving behavior scoring model for UBI.

Forewarned is forearmed – repayment delays in microfinance relationships

2017 ◽  
Vol 77 (2) ◽  
pp. 218-238 ◽  
Author(s):  
Imke Hering ◽  
Oliver Musshoff
Keyword(s):  
Linear Model ◽  
Logit Model ◽  
Generalized Linear Model ◽  
Design Methodology ◽  
Positive Relationship ◽  
Data Set ◽  
Content Type ◽  
Lending Relationships ◽  
Microfinance Institution ◽  
Rich Data

Purpose In order to improve the assessment of current lending policies for a microfinance institution (MFI) in Azerbaijan, the purpose of this paper is to analyse how lending conditions are adjusted based on knowledge gains during the loan relationship, with particular attention to delays in previous loans. Moreover, the paper examines what a lender can pre-determine from its own collected repayment records of clients. In addition, the repayment performances and lending policies between agricultural and non-agricultural clients are differentiated. Design/methodology/approach The analyses are based on a rich data set of an Azerbaijani MFI. For determining the influence of previous delays on the volume rationing in the following loan, the authors apply a generalized linear model. Subsequently, the probability of recidivism is analysed by means of a logit model. Findings The results confirm a positive relationship between delays in previous loans and repayment problems in present loans, which is increased by the severity of the previous delay. With respect to consequences, it is shown that the borrower with previous delays faces an increase in loan volume rationing in the subsequent loan. Moreover, the authors find that the consequences of previous delays do not differ significantly between farmers and other clients. Originality/value Until now, the consequences of repayment delinquencies in microfinance lending relationships have hardly been investigated. This study enhances the understanding of lending policies in microfinance by focussing on relationship aspects and by simultaneously differentiating between farming and non-farming clients.

Composite actors as participant protection: methodological opportunities for ethnographers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jennifer MJ Yim ◽  
Peregrine Schwartz-Shea
Keyword(s):  
Data Sharing ◽  
Design Methodology ◽  
Content Type ◽  
Individual Level ◽  
Research Participants ◽  
Level Data ◽  
Methodological Aspects ◽  
Ethnographic Narratives

PurposeThe purpose of this article is to persuade ethnographers to consider using composites for studies in which protecting participants from identification is especially important. It situates the argument in the context of the transparency and data sharing movements' uneven influence across disciplines.Design/methodology/approachThe paper reviews problems in maintaining confidentiality of research participants using pseudonyms and masking. It analyzes existing literature on composites, conditions of composite use and identifies composite actors as a form useful to place-based ethnography. Methodological aspects of composite actor construction are discussed along with potential opportunities composites offer.FindingsConstruction of composite actors is best accomplished by aggregating thematically during deskwork. Composites provide enhanced confidentiality by creating plausible doubt in the reader's mind, in part, through the presentation of aggregate rather than individual-level data.Originality/valueThis discussion advances the methodology of constructing composites, particularly composite actors, providing guidance to increase trustworthiness of ethnographic narratives that employ composites.

scholarly journals Negative equity in Ireland: estimates using loan-level data

2014 ◽  
Vol 7 (3) ◽  
pp. 327-344 ◽  
Author(s):  
David Duffy ◽  
Niall O’Hanlon
Keyword(s):  
Design Methodology ◽  
Time Series Data ◽  
House Prices ◽  
Age Groups ◽  
Series Data ◽  
Data Set ◽  
Content Type ◽  
Equity Analysis ◽  
Level Data ◽  
Younger Age

Purpose – This paper aims to, using a unique loan-level data set, show the extent to which negative equity in Ireland is concentrated in younger age groups. The sharp decline in house prices since 2007 has led to the emergence of widespread negative equity in Ireland. However, little is known about the type of borrower experiencing negative equity. Design/methodology/approach – This paper uses a unique data set that, for a large sample of mortgages, provides details on both the characteristics of the borrowers and their mortgages. Using this data set, the paper estimates the incidence of negative equity by analysing loans taken out to purchase a primary residence in the period 2005-2012. Findings – The analysis finds the situation in Ireland to be much more severe than that being experienced in other housing market downturns at present, with 64 per cent of borrowers in the period 2005-2012 experiencing negative equity. Analysis by age gives rise to concern, with the majority of those in negative equity aged under 40 years. The paper also points to the large wealth loss experienced by Irish households, in the order of 43 billion, as a result of the fall in property values. Originality/value – The paper is one of the first using loan-level time-series data in Ireland. It highlights the growth in negative equity during the crisis and the extent to which it is concentrated in the younger age groups. It also provides an estimate of the loss in wealth suffered by all households due to the fall in Irish house prices.

Efficiency performance of fertilizer use in arable agricultural production in China

2019 ◽  
Vol 11 (1) ◽  
pp. 52-69 ◽  
Author(s):  
Wei Huang ◽  
Li Jiang
Keyword(s):  
Agricultural Production ◽  
Design Methodology ◽  
Agricultural Sector ◽  
Positive Impact ◽  
Time Varying ◽  
Content Type ◽  
Fertilizer Use ◽  
Efficiency Performance ◽  
Use Efficiency ◽  
Almost All

PurposeFertilizer overuse is regarded as one of the main contributors to agricultural pollution and environmental problems in China. The purpose of this paper is to evaluate technical efficiency (TE) and fertilizer overuse index (FOI) with respect to China’s arable agricultural production and examine regional variations in terms of fertilizer overuse.Design/methodology/approachThe maximum likelihood random effects–time varying inefficiency effects model was applied to estimate TE, fertilizer use efficiency (FUE) and FOI.FindingsOver the study period (2011–2015), TE steadily increased for each individual province. Overall, mean annual TE was 0.811, implying that, on average, Chinese provinces could increase output by 18.9 per cent given unchanged levels of inputs and technology. Mean annual FOI ranged from 0.008 to 3.139, with a mean of 0.685, suggesting that there is fertilizer overuse in almost all provinces, and that large regional variation exists. Coastal provinces were found to have the highest TE scores, while the central region showed the highest degree of fertilizer overuse.Originality/valueThe results indicate that fertilizer use has had a significant positive impact on production in the China’s arable agricultural sector. High TE was not necessarily associated with low FUE.

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