AN ANALYSIS OF LENDERS' INFLUENCE ON AGRICULTURAL PRODUCERS' RISK MANAGEMENT DECISIONS

Agricultural lenders have a stake in and are in a position to influence their borrowers' management decisions. Risk management practice adoption is an area in which lenders might want to exercise this influence. This study employs logistic statistical models to estimate lenders' influence on crop producers' decisions regarding use of three alternative risk management practices: federal multiple-peril crop insurance, crop hail and fire insurance, and forward contracting. Results suggest lenders can exert significant influence on these decisions but that poor communication between lenders and borrowers likely reduces this influence.


Issue Date:
1989-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/30092
Published in:
Southern Journal of Agricultural Economics, Volume 21, Number 2
Page range:
21-33
Total Pages:
13




 Record created 2017-04-01, last modified 2017-04-04

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