Author: Federal Crop Insurance CorporationPublisher:
ISBN:
Category : Crop insurance
Languages : en
Pages : 16
Book Description
Use of Crop Insurance by Agricultural Lenders to Increase Short-term Loan Volume
Author: Federal Crop Insurance CorporationPublisher:
ISBN:
Category : Crop insurance
Languages : en
Pages : 16
Book Description
Use of Crop Insurance by Agricultural Lenders to Increase Short-term Loan Volume
Author: Federal Crop Insurance CorporationPublisher:
ISBN:
Category : Crop insurance
Languages : en
Pages : 13
Book Description
Crop Insurance's Impact on Commercial Bank Loan Volumes
Author: Alexander John SchultzPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This study uses a multi-pronged empirical strategy to improve understanding of how the Federal crop insurance program influenced the supply of agricultural credit. Theoretically, crop insurance could increase lending through two key channels: by decreasing bank exposure to farm sector risk and providing hard information on loan repayment. Using 2 decades of publicly available county-level crop insurance participation data from RMA and loan volume data estimated based on FDIC call reports, we test whether the total volume of production credit extended by commercial banks increases in response to crop insurance uptake. We also consider whether the level of the response is related to the level of bank specialization in agriculture. Our first model is a standard county level fixed effects model that allows us to analyze this relationship over a flexible time period. We also use the policy shock to crop insurance participation in 1995 caused the the 1994 FCIRA to identify the impact of crop insurance use on agricultural loan volumes, using a difference-in-differences strategy based on livestock production not being covered by Federal crop insurance in the 1990s and an instrumental variables strategy developed by O'Donoghue et al. (2009). We find that across different periods and two of our three empirical strategies, higher crop insurance use has a consistent, robust relationship with higher loan volumes. The effect is smaller or nonexistent when only agricultural banks are considered, suggesting that the explicit information on repayment likelihood provided by crop insurance was a strong driver in increasing loan volumes.
Loan Repayments and Improved "all-risk" Crop Insurance
Author: Does Federal Crop Insurance Lead to Higher Farm Debt Use?
Author: Jennifer IfftThe Intended and Unintended Effects of U.S. Agricultural and Biotechnology Policies
Author: Joshua S. Graff ZivinPublisher: University of Chicago Press
ISBN: 0226988031
Category : Art
Languages : en
Pages : 310
Book Description
Using economic models and empirical analysis, this volume examines a wide range of agricultural and biofuel policy issues and their effects on American agricultural and related agrarian insurance markets. Beginning with a look at the distribution of funds by insurance programs—created to support farmers but often benefiting crop processors instead—the book then examines the demand for biofuel and the effects of biofuel policies on agricultural price uncertainty. Also discussed are genetically engineered crops, which are assuming an increasingly important role in arbitrating tensions between energy production, environmental protection, and the global food supply. Other contributions discuss the major effects of genetic engineering on worldwide food markets. By addressing some of the most challenging topics at the intersection of agriculture and biotechnology, this volume informs crucial debates.
Agricultural Finance Review
Author: Loan Portfolio Management
Author: Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 114
Book Description
Glossary of Terms for Agricultural Insurance and Rural Finance
Author: Food and Agriculture Organization of the United NationsPublisher: Food & Agriculture Org.
ISBN: 9789251032428
Category : Business & Economics
Languages : en
Pages : 164
Book Description
Credit Guarantees
Author: Michael GudgerPublisher: Food & Agriculture Org.
ISBN: 9789251041734
Category : Political Science
Languages : en
Pages : 154
Book Description
The problem of collateral is a daily issue for lenders and causes much debate in the development finance community. Given the difficulties experienced in arranging traditional forms of loan security, such as land or chattel mortgages, various collateral substitutes have been proposed. Among the substitutes for traditional collateral is the loan guarantee. Guarantee systems for loans have been proposed, planned and implemented in various countries. The assumption made by proponents of such a service is that the guarantee organization is either better informed about the risk of the loan than the lender or it is better structured financially to be able to manage the risk. Despite the apparent attractiveness of a loan guarantee, the empirical evidence available gives little encouragement. Nevertheless, interest in guarantees continues.