Farm‐level and macroeconomic determinants of farm credit risk migration rates

Agricultural Finance Review

ISSN: 0002-1466

Publication date: 1 November 2004

Abstract

Logistic regression techniques for panel data are used to identify factors affecting farm credit transition probabilities. Results indicate that most farm‐specific factors do not have adequate explanatory influence on the probability of farm credit risk transition. Class upgrade probabilities are more significantly affected by changes in certain macroeconomic factors, such as economic growth signals (from changes in stock price indexes and farm real estate values) and larger money supply that relax the credit constraint. Increases in interest rates, on the other hand, negatively affect such probabilities.

Keywords

Citation

Escalante, C.L., Barry, P.J., Park, T.A. and Demir, E. (2004), "Farm‐level and macroeconomic determinants of farm credit risk migration rates", Agricultural Finance Review, Vol. 64 No. 2, pp. 135-149. https://doi.org/10.1108/00214660480001159

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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