This paper explicitly models the interdependent finance and investment decision in order to increase the understanding on how fluctuations in agricultural investment are attributable to changes in financial decisions. Euler equations for investment and finance are estimated by the use of the GMM...

Farm income in Southwestern Minnesota is estimated to drop to extremely low and possibly negative levels in 1998 due to the very low prices now in the market place. Expected high yields on some farms will soften but not overcome the blow of the low prices; those farms with crop losses face a...