6. The Politics of Globalization in Rural Mexico: Campesino Initiatives to Restructure the Agricultural Credit System

2019 ◽  
pp. 145-170
Author(s):  
David Myhre
Keyword(s):  
Credit System ◽  
Agricultural Credit ◽  
Rural Mexico

scholarly journals Optimal Agricultural Credit Association Branch Office Locations

2003 ◽  
Vol 35 (1) ◽  
pp. 127-141 ◽  
Author(s):  
Timi M. Scaletta ◽  
Jeffrey R. Stokes
Keyword(s):  
Integer Programming ◽  
Optimal Number ◽  
Programming Models ◽  
Mixed Integer ◽  
Credit System ◽  
Agricultural Credit ◽  
Farm Credit ◽  
Farm Credit System ◽  
Branch Office ◽  
Credit Association

Since the farm financial crisis of the 1980s, Farm Credit System banks continue to merge and consolidate to enhance competitiveness. Two mixed-integer programming models of AgChoice Agricultural Credit Association (ACA), a recently merged ACA in Pennsylvania, were developed to determine the optimal number, location, and territory of branches. The approach suggests useful information can be determined regarding the reconfiguration process after bank mergers, especially given the fact that the current AgChoice ACA configuration is available for comparison purposes.

The Agricultural Credit System in the Ottoman Empire between 1863 and 1888

Rural History ◽  
2017 ◽  
Vol 28 (2) ◽  
pp. 177-188 ◽  
Author(s):  
SERTAÇ DOKUZLU
Keyword(s):  
Ottoman Empire ◽  
Capital Accumulation ◽  
Agricultural Development ◽  
Social Benefits ◽  
Small Scale ◽  
Family Farms ◽  
Credit System ◽  
Risk And Uncertainty ◽  
Agricultural Credit ◽  
Joint Actions

AbstractAgricultural credit organisations are paramount to every country because agriculture must operate under threats of risk and uncertainty. When small-scale family farms are dominant, all types of agricultural organisations become important to keep farmers’ incomes at a reasonable level and encourage agricultural development. Midhat Pasha understood the importance of agricultural organisations, and he created a well-designed system for agricultural credit. He is the founder of Homeland Coffers that distribute credits to farmers. The original side of these credit organisations was capital accumulation and the methods of using it. Capital for these Coffers were provided by the joint actions of credit users. Midhat Pasha connected two cooperatives while the production cooperative provided capital for Homeland Coffers, they operated as a credit cooperative for twenty-five years in the Ottoman Empire. This credit organisation helped development of agriculture and provided many social benefits to the rural area.

Market microstructure and the historical relationship between the US farm credit system, farm service agency and commercial bank lending

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Calum G. Turvey ◽  
Amy Carduner ◽  
Jennifer Ifft
Keyword(s):  
Market Microstructure ◽  
Credit System ◽  
Agricultural Credit ◽  
Agricultural Finance ◽  
Content Type ◽  
Demand Elasticities ◽  
The Us ◽  
Farm Credit ◽  
Farm Credit System

PurposeThe purpose of this paper is to investigate the market microstructure related to the Farm Credit System (FCS), Commercial Banks (CB) and Farm Services Administration (FSA). The commercial banks frequently call out the FCS as having an unfair advantage in the agricultural finance market place due to tax exempt bonds, and an implied guarantee of those bonds. This paper addresses the issue by examining the interrelationships since 1939, while addressing the historically distinctive roles that the FCS, CB and FSA have played in the US agricultural credit market.Design/methodology/approachThere are two components to our model. The first is the estimation of short and long run credit demand elasticities, as well as land elasticities. These are estimated from a dynamic duality model using seemingly unrelated regression. The point elasticity measures are then used as independent variables in least square regressions, combined with farm specific and related macro variables, for the Cornbelt states. The dependent variable is the year-over-year changes in paired FCS, CB and FSA loans.FindingsThe genesis of the FCS was to provide credit to farmers in good and bad years. Therefore, we expected to see a countercyclical relationship between FCS and CB. This is found for the farm crisis years in the 1980s but is not a continuous characteristic of FCS lending. In good times the FCS and CB appear to compete, albeit with differentiated market segmentation into short- and long-term credit. The FSA, which was established to provide tertiary support to both the FCS and CB, appears to be responding as designed, with greater activity in bad years. The authors find the elasticity measures to be economically significant.Research limitations/implicationsThe authors conclude that the market microstructure of the agricultural credit market in the US is important. Our analysis applies a broader definition of market microstructure for institutions and intermediaries and reveals that further research examining the economic frictions caused by comparative bond vs deposit funding of agricultural credit is important.Originality/valueThe authors believe that this is the first paper to examine agricultural finance through the market microstructure lens. In addition our long-term data measures allow us to examine the economics through various sub-periods. Finally, we believe that our introduction of credit and land demand elasticities into a comparative credit model is also a first.

Nontraditional lenders and access to local agricultural credit markets by beginning and female farmers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Denis Nadolnyak ◽  
Valentina Hartarska
Keyword(s):  
Financial Services ◽  
Credit Markets ◽  
Substitution Effect ◽  
Credit System ◽  
Agricultural Credit ◽  
Content Type ◽  
Access To Credit ◽  
Alternative Financial Services ◽  
Female Farmers ◽  
Branch Density

PurposeThe purpose of this study is to evaluate if access to local branch infrastructure of the farm credit system institutions (FCS), banks and credit unions (BCU), and alternative financial services (AFS) providers is related to the use of credit from non-traditional lenders (NTLs). The focus is on beginning and women operators who are typically credit constrained and thus more likely to suffer from closures of bank branches and consolidation of traditional agricultural lenders.Design/methodology/approachInformed by Detragiache et al. (2000), the authors specify farmers’ use of loans as a function of their access to credit (measured by the branch density of each lender type) along with operator’s and operation’s controls. The measures of loans by NTLs (number, use, share and lender type) require the use of Poisson, Probit, Tobit and Multinomial Logit techniques. This study utilizes individual producer data from the 2018 Agricultural Resource Management Survey and 2018 county-level branch density data for FCS, BCU and AFS providers.FindingsAccess to credit from FCS is helpful to BFRs only, while access to AFS is associated with the use of loans from NTLs by women but not by BFRs. As expected, access to BCU credit matters for the use of loans from NTLs, with a complementary effect for BFRs but a substitution effect for women’s use of such loans.Originality/valueThere are no studies on local agricultural credit markets in the US that evaluate the implications from changes in access to credit on credit-constrained borrowers and their use of NTLs’ credit.

Historical developments in agricultural finance and the genesis of America’s farm credit system

2017 ◽  
Vol 77 (1) ◽  
pp. 4-21 ◽  
Author(s):  
Calum G. Turvey
Keyword(s):  
Rural Communities ◽  
Banking System ◽  
Credit System ◽  
Agricultural Credit ◽  
Agricultural Finance ◽  
Content Type ◽  
Farm Credit ◽  
Farm Credit System ◽  
Historical Developments

Purpose The purpose of this paper is to provide a review of major historical developments in agricultural finance, with particular emphasis on agricultural credit. It reviews the development of Raiffeisen and related banks that emerged in Germany and Europe throughout the nineteenth century and how the cooperative banking system made its way into the banking system of the USA in the early twentieth century. The paper emphasizes the role of the state in the developing of agricultural credit, especially with respect to farm mortgages, securitization, and bond structures. Design/methodology/approach This paper presents a historical synthesis of historical literature on agricultural credit. Findings This paper shows the direct linkage between the developments in Raiffeisen credit cooperatives and the Farm Credit System (FCS) and details the emergence of the land banks, farm credit banks, agricultural bonds and the role of joint-stock banks in agricultural credit policy. Originality/value In total, 2016 marks the 100th anniversary of the passing of the 1916 Federal Farm Loan Act which set in motion the USs’ first Government Sponsored Enterprise and catalyzed the formation of the FCS as it operates today to provide credit to farmers and rural communities on a cooperative basis. Although there are a few wonderful books written on certain aspects of the FCS the story of how the FCS was initiated and the many struggles it faced up to the 1933 Act has not been told often enough. This paper tells the story of the evolution of agricultural credit that ultimately led to the formation of the FCS.

scholarly journals The Position of Women in the Repayment of Agriculture Loans in Nigeria: An Analysis

1999 ◽  
Vol 24 (4) ◽  
pp. 29-34 ◽  
Author(s):  
C J Arene ◽  
G C Aneke
Keyword(s):  
Formal Education ◽  
Farm Size ◽  
Credit System ◽  
Length Of Service ◽  
Agricultural Credit ◽  
Adoption Of Innovations ◽  
Detailed Statistical Analysis ◽  
Female Farmers ◽  
Gross Income ◽  
Loan Size

The study attempts to assess the credit system within the framework of the Supervised Agricultural Credit Scheme (SACS) in Enugu State of Nigeria. The emphasis is on repayment position and technical aid to female farmers. The results show that high repayment rate farmers had a larger loan size, larger farm size, higher gross income, shorter distance between home and source of loan, higher leve l of formal education, larger household size, and higher level of adoption of innovations than low repayment rate farmers. Detailed statistical analysis reveals that the number of farm visits is significantly related to the farmers' gross income while number of farmers supervised, length of service as supervisors, and level of formal training in agriculture account for less. Loan programmes for female farmers are of great importance for the development of agriculture. Their efficiency is, however, considerably determined by good quantitative and qualitative supervision and advi sory service.

scholarly journals Some Evidence on the Relationship Between Loan Insurance and the Supply of Agricultural Credit From Commercial Banks

1980 ◽  
Vol 12 (2) ◽  
pp. 25-29
Author(s):  
L. Upton Hatch ◽  
Wesley N. Musser
Keyword(s):  
Small Business Administration ◽  
Credit System ◽  
Federal Programs ◽  
Agricultural Credit ◽  
Public Programs ◽  
Agricultural Finance ◽  
Public Agency ◽  
Farm Credit ◽  
Farm Credit System ◽  
Farmers Home Administration

Insured farm loans have evolved to be an important component of the federal role in the agricultural credit subsector. Currently, agricultural credit is supplied by three sets of institutions: (1) private firms and individuals, (2) the quasiprivate cooperative Farm Credit System, and (3) the federal public programs of the Farmers Home Administration (FmHA) and Small Business Administration. Statuatory authority currently limits federal programs to a residual role of lending to borrowers who cannot receive credit from the other segments. Though a large component of public programs consists of emergency loans in areas of economic disaster, the FmHA also makes farm operating and real estate loans to farmers who meet the statuatory requirements. The source of funds for some FmHA loans is federal appropriations and money market certificates. However, guaranteed loans have become an important component of FmHA programs. These loans are made in cooperation with other agricultural finance agencies. The public agency insures or guarantees repayment of the loan. The cooperating firm negotiates the loan and provides the funds. Usually the interest payment is below the current market interest rate structure.

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