TY  - JOUR
AB  - Purpose The purpose of this paper is to identify determinants of feasible outcome events (expired with no loss, settled for loss, still performing) and time to event of Farm Service Agency (FSA) operating and farm ownership (FO) loan guarantees.Design/methodology/approach Data on 19,126 FSA guaranteed loans, which were made by various lenders to farmers who have limited ability to obtain loans from normal sources without the Federal guarantee, were collected. Cox proportional hazards models for operating loans (OLs) and FO loans are estimated to identify borrower characteristics, loan characteristics, lender types, and farm and macroeconomic environment factors that influence guarantee outcomes.Findings Loans with different characteristics (loan amount, loan term, lender type, region originated) and assistance programs (Beginning Farmer, Interest Assistance) have differing guarantee outcomes. Contemporaneous variables, in particular delinquency status, have a significant impact on guarantee outcomes.Research limitations/implications All loans were originated in calendar years 2004 and 2005. Since FO loans may have as long as 40 year terms, results are not as robust for FO loans as for OLs.Practical implications Different loan characteristics and macroeconomic conditions significantly influence the occurrence of possible guarantee outcomes and time to the outcomes.Originality/value Guaranteed loans are the primary method of government credit assistance to US farm operators. Data on individual borrowers have been difficult to obtain for much of the life of the guaranteed program because loan applications are held privately. This study provides insight on how various factors drive guarantee performance which is useful to policy makers trying to increase guaranteed loan program efficiency.
VL  - 76
IS  - 4
SN  - 0002-1466
DO  - 10.1108/AFR-04-2016-0036
UR  - https://doi.org/10.1108/AFR-04-2016-0036
AU  - Long Deng
AU  - Ahrendsen Bruce L.
AU  - L. Dixon Bruce
AU  - B. Dodson Charles
PY  - 2016
Y1  - 2016/01/01
TI  - Modeling duration of FSA operating and farm ownership loan guarantees
T2  - Agricultural Finance Review
PB  - Emerald Group Publishing Limited
SP  - 426
EP  - 444
Y2  - 2024/04/27
ER  -