Farmers have increasingly been procuring external equity financing through either written or verbal business arrangements. Passage of the Agricultural Risk Protection Act in 2000 has resulted in widespread adoption of crop insurance among farmers. Crop insurance changes farmers’ production...

Credit risk models are developed and used to estimate capital requirements for agricultural lenders under the New Basel Capital Accord. The theoretical models combine Merton’s distance-to-default approach with credit value-at-risk methodologies. Two applied models, CreditMetrics and KMV, are...

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A normalized quadratic input distance function is proposed with which to estimate technical efficiency on commercial banks regulated by the Federal Reserve System. The study period covers 1990 to 2000 using individual bank information from the Call and Banking Holding Company Database. A...

Agricultural credit markets are dominated by two institutional retail lender groups, the cooperative Farm Credit System (FCS) and commercial banks. Together these two lender groups supply 70 percent of the farm sector’s total credit needs. This analysis uses USDA’s 2001 and 2002 Agricultural...

The 1998 Survey of Small Business Finances provides robust information on the financing of small businesses including an overview of their firm’s organization, financial characteristics, and credit use. Information from the survey is used in this study to compare the financial characteristics...

A framework is identified for modeling credit risk in agriculture. A CreditRisk+ type model is deemed most suitable for agricultural lending. The CreditRisk+ model is modified to overcome its drawbacks by incorporating recent research that accounts for sector correlations and uses a more stable...