The Impacts of Farm Financial Structure on Production Efficiency

Farm financial structure may affect both short- and long-run input usage, thereby affecting farm efficiency. Any inefficiencies arising from the choice of inputs can be magnified over time as credit constraints continue to affect input usage. In a panel of 54 North Dakota crop farms, efficiency and debt structure were related. Intermediate debt was found to be positively related to farm technical efficiency, and short-term debt was negatively associated with technical efficiency. Use of intermediate-term debt was positively associated with farm-scale efficiency, whereas no significant relationship was found between short- and long-term debt and scale efficiency.


Issue Date:
2005-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/43738
Published in:
Journal of Agricultural and Applied Economics, Volume 37, Number 1
Page range:
277-289
Total Pages:
13
JEL Codes:
Q1; Q12; Q16




 Record created 2017-04-01, last modified 2017-08-25

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