Determinants of Lender Choice among Kansas Farmers
Опубликовано на портале: 06-02-2004Manhattan, 1999
Department of Agricultural Economics
|Тематические разделы:||Экономика, Экономика отраслевых рынков, Экономика отраслевых рынков: Аграрная экономика|
The objective of this study is to examine the financial characteristics of farmers in North Central Kansas and to relate this to the number of and types of lender that they choose to use. Specifically, the study is concerned with analyzing the changes, if any, of the use of nontraditional lenders such as John Deer and Case credit. To meet this objective, econometric analysis was used to determine which farm characteristics affect the market share of loans that different lenders have and how this has changed over time. Two sets of Tobit models were developed to analyze the types of institutions being utilized. The dependent variables in one set were the market share of each type of lending institution by farm, while the dependent variables in the other were the dollar volume of loans that each type of institution held in each farm. The explanatory variables used were the year, current ratio, leverage ratio, capital turnover, internal growth rate, and age. Coefficient were calculated for the independent variables to determine: 1) the change in the volume of the dependent variable for farms that use the respective lender, and 2) the probability that a farm which does not use the lender will obtain financing from them when the independent variable increases. Two additional sets of models were developed to analyze the number of lenders that farmers use and the concentration of lenders within a farm. These used the same independent variables as the previous models with the additional of total assets. The first set of models used the number of institutions and the number of lenders as dependent variables. The dependent variables in this case were count data and therefore poisson analysis was used to estimate these models.