The effect of risk on farmland values and returns is analyzed using a capitalization model. County-level models are estimated using spatial econometric techniques. Our results show that riskier regions and growing conditions have both lower land values and higher risk-adjusted rates of return to...

This study compares the economic well-being of farm and nonfarm households using data from the 2004 Agricultural Resource Management Survey and the 2004 Survey of Consumer Finances. Comparisons are made in terms of income and wealth using Tukey-Kramer mean separation tests, regression analysis,...

In this study, we attempt to prove some previously held ideas of machinery investment decisions using farm level data from Illinois. Investment decisions are analyzed taking into consideration past investment decisions in the county and on the individual farm. The results show there is a...

This paper examines the effect of diversification on farm value by comparing values of diversified farms to a portfolio of comparable specialized farms. Using data from the Agricultural Resource Management Study, this study finds a diversification discount in agriculture similar to the discount...

We applied the migration approach to credit scoring measurement to determine how ratings, focused on farm characteristics such as farm size, age, and farm business type, change across business cycles. The empirical results from analyzing migration matrices using data from FBFM suggest that old,...

While traditional finance theory suggests that leasing and debt are substitutes, some papers demonstrated the theoretical possibility of complementarity. Empirical studies indicate that both are possible. In this paper we will use the Tobit model, ordinary least squares and quantile regression...

This article empirically investigates the prices and returns of the stocks of U.S. agriculture related firms for momentum anomaly. The study utilizes the decile portfolios sorting and the Fama and MacBeth cross section regression empirical methods. The main dataset is a merger of the balance...

Employing a logit model and farm-level data for Illinois from 1995 to 2004, this study explores the importance of farm-type differences in the development of credit scoring models. Apart from the conclusion that regional credit scoring models specific to each farm type are needed, the following...

The increasing use of agricultural contracts and processor concentration raises concerns that processors may offer lower contract prices in absence of competition from other local contractors and spot markets. This study examines the price competitiveness of marketing and production contracts...