Beginning farmers' entry and exit: evidence from county level data

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Valentina Hartarska ◽  
Denis Nadolnyak ◽  
Nisha Sehrawat
Keyword(s):  
Real Estate ◽  
Women Farmers ◽  
County Level ◽  
Barriers To Entry ◽  
Entry And Exit ◽  
Content Type ◽  
Access To Credit ◽  
Farm Work ◽  
Level Data ◽  
Beginning Farmers

PurposeThis paper identifies factors that affect entry and exit of beginning, young and women farmers and ranchers.Design/methodology/approachThe empirical framework is fixed effects regression analysis that uses county level data to evaluate how barriers to entry, access to and use of credit, local economic environment, and climate affect entry and exit of Beginning Farmers and Ranchers (BFRs). The dataset is assembled from several sources matching the Census of Agriculture years for the period of 1997–2017.FindingsResults show that new farmers are more likely to enter in counties with more and smaller farms and with lower farm productivity, indicating that BFRs have the potential to improve the overall productivity in such counties if able to grow and succeed. The results also indicate that the high capital intensity nature of farming is an effective barrier to entry. BFRs are more likely to do better in counties where agriculture is more important to the economy and with more off-farm work opportunities. The net entry is positively associated with higher input/output price index and the use of insurance but is unaffected by government payments and farm and off-farm income. The authors observe substitutability between farming and alternative self-employment for more entrepreneurial young people. Net entry increases with availability of non-real-estate loans but decreases with real estate credit. Thus, for BFRs to acquire the assets needed to reach optimal scale, access to credit remains essential.Originality/valueThe authors are not aware of other work that estimates how barriers to entry and other economic factors including access to credit affect entry and exit of BFRs of various ages and young and women farmers using the Census of Agriculture data up to 2017.

Experience of entrepreneurial training for female farmers to stimulate entrepreneurship in Uganda

2014 ◽  
Vol 29 (7) ◽  
pp. 382-401 ◽  
Author(s):  
Fernando Lourenço ◽  
Natalie Sappleton ◽  
Akosua Dardaine-Edwards ◽  
Gerard McElwee ◽  
Ranis Cheng ◽  
...  
Keyword(s):  
Women Farmers ◽  
Business Success ◽  
Negative Attitudes ◽  
Entrepreneurship Training ◽  
Content Type ◽  
Access To Credit ◽  
The North ◽  
Female Farmers ◽  
Entrepreneurial Training ◽  
Access To Knowledge

Purpose – The purpose of this study is to evaluate the success of a scheme, supported by the Ugandan Agribusiness Initiative Trust, to fund gender and entrepreneurship training for women farmers in the north of Uganda (Gulu District and Lira District). Moreover, this paper reflects upon our experience of delivering training for women farmers and highlights key observations related to women’s entrepreneurship in Uganda. Design/methodology/approach – A practitioner-based reflection which shares the experiences of the process of developing and delivering gender and entrepreneurship training for women in Uganda. Findings – Through the experience of running gender and entrepreneurship training for women farmers in Uganda, a series of barriers to female rural entrepreneurs are highlighted: lack of access to credit, gender inequality, poor infrastructure, lack of access to knowledge and education, negative attitudes towards women and few initiatives to facilitate economic and business success. Originality/value – This paper provides reflection of the experience gained from the delivery of training and interaction with women farmers and entrepreneurs in Uganda.

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.

Mortgage credit and bankruptcy chapter choice: a case of US counties

2016 ◽  
Vol 42 (7) ◽  
pp. 680-705 ◽  
Author(s):  
Chintal Ajitbhai Desai
Keyword(s):  
Fixed Effects ◽  
Design Methodology ◽  
County Level ◽  
Mortgage Debt ◽  
Content Type ◽  
Mortgage Credit ◽  
Unsecured Debt ◽  
Level Data ◽  
Generalized Estimation Equation ◽  
Us Counties

Purpose – A financially distressed homeowner considers bankruptcy filing, either Chapter 7 or Chapter 13, to delay foreclosure. On one hand, Chapter 13 filing takes longer processing time, spreads mortgage arrearages over the debt repayment period, and increases the possibility of loan modification. On the other hand, Chapter 7 filing discharges unsecured debt, which provides additional disposable income for mortgage payments. The paper aims to discuss these issues. Design/methodology/approach – The author uses fixed-effects (within variation), random-effects, and generalized estimation equation models with time dummies on the panel data of US counties. Findings – The results show that mortgage delinquency increases Chapter 7 filings, while it has positive but statistically insignificant effect on Chapter 13 filings. In addition, a county’s mortgage debt to income and proportion of mortgage borrowers increase its Chapter 7 filings. Originality/value – The contribution of the paper is to assess the effect of mortgage credit on the bankruptcy chapter choice using the county-level data.

What is driving economic and financial success of US cow-calf operations?

2014 ◽  
Vol 74 (3) ◽  
pp. 311-325 ◽  
Author(s):  
Richard Nehring ◽  
Jeffery Gillespie ◽  
Charles Hallahan ◽  
James Michael Harris ◽  
Ken Erickson
Keyword(s):  
Structural Changes ◽  
Financial Success ◽  
Content Type ◽  
Factors Affecting ◽  
Farm Level ◽  
Farm Work ◽  
Farm Diversification ◽  
Level Data ◽  
Dupont Analysis ◽  
Cow Calf

Purpose – The purpose of this paper is to determine the drivers of economic financial success of US cow-calf operations. Design/methodology/approach – This research uses a system of equations (DuPont analysis) in conjunction with 2008 farm-level data from the US Department of Agriculture's Agricultural Resource Management Survey to evaluate the factors driving cow-calf profitability, namely net profit margins, asset turnover ratio, and asset-to-equity ratio. Findings – The study finds that the main drivers of return on equity are region, number of harvested acres on the farm, diversification of the farm, operator off-farm work, spousal off-farm work, and adoption of technologies. Of these factors, those for which producers can make short-term adjustments include off-farm work decisions and adoption of technologies. Longer-term adjustments can be made for farm diversification. Originality/value – To the authors’ knowledge, no existing research has used farm-level data across US production regions to examine the factors affecting returns to equity of US cow-calf operations. These research results may be used to identify strategies producers can use to improve their farm's economic viability, areas where extension services can assist farmers in making better financial decisions and economic factors that are likely to lead to structural changes in the beef industry.

Chinese regional productivity and urbanization: a county-level study in 2007-2010

2015 ◽  
Vol 8 (2) ◽  
pp. 82-105 ◽  
Author(s):  
Fei Jin ◽  
Qi Zhang
Keyword(s):  
Spatial Distribution ◽  
Large Scale ◽  
County Level ◽  
Change Analysis ◽  
Content Type ◽  
Tfp Growth ◽  
Visual Spatial ◽  
Level Data ◽  
Short Period ◽  
The Impact

Purpose – This study aims to analyze the total factor productivity (TFP) performance of Chinese counties and cities over the period from 2007 to 2010. Chinese regional and urban–rural TFP performance are investigated by using county-level data, and the impact of the urbanization policy on TFP is discussed. Design/methodology/approach – The data envelopment analysis (DEA)-Malmquist technique and Kumbhakar–Sun’s semi-parametric model are used for TFP change measurement and comparison. The county-level TFP performances are summarized and studied by statistical methods. Their spatial distribution is exhibited in a geographical thematic map. Findings – The county-level analysis proves that China underwent a large-scale TFP decline over the period from 2007 to 2010. Statistically speaking, cities’ TFP growth is more positive than counties’; however, different provinces also have their regional characteristics. In addition, the Chinese Hukou (household registration) institution divides Chinese urbanization into halves, which have the opposite correlation on TFP growth. Research limitations/implications – Because the collection of county-level data is enormous and costly, this study only focuses on a very short period (2007-2010) with estimated data. This TFP change analysis is limited to the short-term phenomenon around the 2008 international financial crisis. Practical implications – This study provides a visual spatial distribution for county-level TFP change in China over the period 2007-2010. Results of the analysis demonstrate that the Chinese Hukou system is among the policy factors that can influence productivity in the course of urbanization. Originality/value – The achievement of the first nationwide county-level TFP change study for economic growth in China is innovative. This study provides a unique perspective for understanding productivity performance at the regional level over the period investigated, which provides invaluable data for investigating the impact of urbanization and the rural–urban gap on TFP growth.

Quantification of financial consequences of buildings' ageing: analysis of panel building-level data from the Polish office space market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bolesław Kołodziejczyk ◽  
Dmytro Osiichuk ◽  
Paweł Mielcarz
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Content Type ◽  
Financial Outcomes ◽  
Level Data ◽  
Real Estate Investments ◽  
Occupancy Rates ◽  
The Impact ◽  
Real Estate Assets

PurposeRelying on a unique proprietary Polish office market space database, the paper attempts to quantify the impact of buildings' age on the financial performance of real estate assets.Design/methodology/approachPanel econometric modeling was utilized to disentangle the impact of buildings' functional obsolescence and technical deterioration on their long-term financial performance.FindingsIn line with casual empiricism, our findings show a negative associative link between properties' age and potential lease revenue. The concomitant stickiness of service charges presages a possible long-term deterioration of financial outcomes of real estate investments. While older buildings generally have higher occupancy rates, the absorption rates are found to be negatively affected by the properties' age. On the bright side, the elasticity of vacancy rate with respect to rental rates is found to decrease as buildings get older. Further, the rent differential is confirmed to be more pronounced in higher age properties hinting at an existing potential for price discrimination, which may at least partially compensate for stagnant rents.Originality/valueOur empirical results confirm the properties' age to be a statistically significant factor in shaping the long-term performance of real estate assets, which should be better accounted for in financial projections for real estate developments.

Examining institutional credit access among agricultural households in Eastern India: trends, patterns and determinants

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anjani Kumar ◽  
Raya Das ◽  
Aditya K S ◽  
Seema Bathla ◽  
Girish K. Jha
Keyword(s):  
Financial Services ◽  
National Sample ◽  
Sample Survey ◽  
Eastern India ◽  
Heckman Selection Model ◽  
Content Type ◽  
Credit Access ◽  
Access To Credit ◽  
Level Data ◽  
Agricultural Households

PurposeThis paper is an attempt to understand the pattern of credit among agricultural households in Eastern India and to identify the correlates of their access to institutional credit for policy imperatives.Design/methodology/approachThe study uses unit-level data from the All-India Debt and Investment Survey of the 59th and 70th rounds of the National Sample Survey Office for the years 2002–2003 and 2012–2013. Cragg's double-hurdle model and the Heckman selection model are used to estimate the determinants of access to and the amount of institutional loans taken by households. These models also account for potential selection bias in the findings.FindingsThe study reveals that access to credit is strongly associated with the socioeconomic and demographic characteristics of agricultural households. However, about half of the farmers in the eastern states of India lack access to institutional credit despite the government's attempts to include them in the ambit of formal financial services. Thus, strategies for developing agriculture in Eastern India must include efforts to bring small and marginal farmers under the coverage of institutional credit.Research limitations/implicationsThese data are based on the responses given by the sample households and not the experimental data. The data pertain to the year 2013.Originality/valueThe findings emphasize that strategies for developing agriculture in Eastern India must give special push to enhance small and marginal farmers' access to institutional credit.

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