This paper uses real option analysis to evaluate investment decisions in ethanol facilities. First, we consider the option to expand the scale of a conventional ethanol plant. Second, we evaluate the option to choose a production technology given three drymilling choices – a conventional...

Farm Family Adjustments to Financial Stress

How Do the Risks and Returns in Farming Compare to Other Investments?

Access to ICT-based market information is crucial to the adoption of agricultural seed technologies for maize, beans and groundnut and to improve smallholder farmer yields and income. This ICT-based market information is provided by FM radio stations and by market information centers through...

Abstract Currently Unavailable.

Purpose – The purpose of this paper is to determine if there are positive microeconomic effects from a state-funded loan participation program on farm productivity and investment behavior. Design/methodology/approach – The authors take the approach that access to credit solves a liquidity...

Purpose – The purpose of this paper is to investigate the relationship between loan default and loss given default (LGD) in an agricultural loan portfolio. The analysis employs a simulation model approach to evaluate the role that systematic and non-systematic risks play in determining the...

The success of various bank management strategies is evaluated using data from banks located in Minnesota during 1988-1994. These strategies are identified using a combination of data from financial statements and survey data. Each strategy is evaluated based on its effect on rate of return on...