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Competition in farm credit markets: identifying market segments served by the farm credit system and commercial banks

Agricultural Finance Review

ISSN: 0002-1466

Article publication date: 1 November 2004

Abstract

Agricultural credit markets are dominated by two institutional retail lender groups, the cooperative Farm Credit System (FCS) and commercial banks. Analysis of farm loans made over the 1991S1993 and 2001S2002 periods indicates that FCS lenders were more likely to serve full‐time commercial farmers and farmers located in regions with less competitive credit markets. In contrast, commercial banks were more likely to serve small, part‐time, and hobby farmers. This segmentation of farm credit markets is consistent with federal regulations requiring the FCS to provide credit to “bona fide” farmers with a basis for credit.

Keywords

Citation

Dodson, C.B. and Koenig, S.R. (2004), "Competition in farm credit markets: identifying market segments served by the farm credit system and commercial banks", Agricultural Finance Review, Vol. 64 No. 2, pp. 167-186. https://doi.org/10.1108/00214660480001161

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited