volume
56, 1996
Invited
Paper
Lee
and Irwin / Restructuring
the Farm Credit System: A Progress Report
Research
Saunders
/ A Time-Series Analysis of
the Relationship Between Inflation and Productivity Growth in the
U.S. Agricultural Sector
Perry,
Nixon, and Stoff / A
Comparison of Tax Burdens of U.S. Dairy Producers
Bessler
/ Agricultural Prices, the
Gold-Exchange Standard, and the Great Depression
Barry,
Sherrick, Lins, Banner, Dixon, and Brake / Farm
Credit System Insurance Risk Simulation Model
Jensen
and Landemeier / Optimal
Leverage with Risk Aversion: Empirical Evidence
Extension
Saxowsky,
Gustafson, and Crane / Developing
a Farm Business Planning Extension Program: The North Dakota Experience
Brake
/ Exit Interview with
John R. Brake
Abstracts
Lee
and Irwin / Restructuring
the Farm Credit System: A Progress Report <top>
The Cooperative
Farm System (FCS) was formed over the period 1916 to 1933. Its
basic structure remained essentially unchanged until the mid-1980s
when severe financial stress among FCS borrowers led Congress
to pass legislation that provided for mandatory and voluntary restructuring. Much of this restructuring has taken place. The number of banks
has been reduced from 37 to eight , and there has been a corresponding
decline of nearly 40% in the number of lending association. To date, evidence of improved financial performance due to restructuring
is inconclusive. A number of other issues related to the system's
structure remain unresolved. Future research needs to be
guided by a better understanding of how the roles of FCS institutions
have been changed by restructuring.
Saunders
/ A
Time-Series Analysis of the Relationship Between Inflation and Productivity
Growth in the U.S. Agricultural Sector <top>
This
study investigates the relationship between productivity growth in
the U.S. agricultural sector. Productivity is measured by the
total factor productivity and inflation is approximated by use of
the consumer price index and the GDP implicit price deflator. Data and initially subjected to ADF tests to determine the order of
integration, with test results indicating that a VAR model in
the second differences is an appropriate analysis.
The Granger
causality framework is employed to analyze the existence of casual
relationships among the test variables. Applying the minimum
FPE causal testing method, a bi-directional causal flow between inflation
and productivity is established. Findings show that inflation
has a negative impact on the overall factor productivity growth in
the sector, and has statistically significant negative impact on inflation. Thus, agricultural productivity growth has benefited the entire
U.S. economy.
Perry,
Nixon, and Stoff / A
Comparison of Tax Burdens of U.S. Dairy Producers <top>
In this
study, we estimate the federal, state, and local tax burdens in dairy
farmers in 48 states. The study utilized case farm scenarios
in New York, Wisconsin, and California to demonstrate how tax varied
for milk producers among states. For the states analyzed, Arizona,
Oregon, New York, and Washington consistently had the highest overall
tax burden while Delaware, North Dakota, and Alabama had the lowest. The results for the three case farms were highly correlated, suggesting
that the relative rankings are robust to changes in farm size
and structure.
Bessler
/ Agricultural
Prices, the Gold-Exchange Standard, and the Great Depression <top>
Historical
decompositions are used to investigate the role of the abandonment
of the fixed gold standard in the relation of prices of four agricultural
commodities over the year 1933 and the first month of 1934. The increase in the price of gold over the study period had a substantial
positive influence on the four agricultural prices.
Barry,
Sherrick, Lins, Banner, Dixon, and Brake / Farm
Credit System Insurance Risk Simulation Model <top>
A stochastic
simulation model is developed for use by the Farm Credit System Insurance
Corporation to facilitate the evaluation of the long-term adequacy
of the insurance fund, and to serve as a tool for reevaluating fund
adequacy as the risks and capital positions of the FCS banks change. The model explicitly accounts for the effects of credit risk,
interest rate risk, and part of liquidity risk through a combination
of probability distributions, accounting specifications, and estimated
relationships among key variables affecting FCS bank performance. Applications of the model are illustrated under alternative risk conditions.
Jensen
and Landemeier / Optimal
Leverage with Risk Aversion: Empirical Evidence <top>
This
study empirically tests the unconstrained utility maximization model
often used in agricultural finance research. Using panel data,
we compare theoretical model with estimated coefficients from the
empirical model. A reasonable degree of consistency is found
between the two models. Leverage empirically by tax policy,
risk, growth rate in the value of assets, and farm profitability.
Saxowsky,
Gustafson, and Crane / Developing
a Farm Business Planning Extension Program: The North Dakota Experience
<top>
This
article reviews a planning process that was developed to assist farmers
to create a long-term business plan for their operation. A multi-step
planning process that integrates business management with family goals
is described. Participant evaluations of subsequent extension
educational programs were favorable.
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