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| Durguner, Seda; Katchova, Ani L.. |
| Employing a logit model and farm-level data for Illinois from 1995 to 2004, this study explores the importance of farm-type differences in the development of credit scoring models. Apart from the conclusion that regional credit scoring models specific to each farm type are needed, the following are identified as the most pertinent factors for explaining creditworthiness: previous years working capital to gross farm return, the debt-to-asset ratio, and return on farm assets. Furthermore, beef farms have a larger marginal effect compared to grain farms on the probability of the farmer being highly creditworthy. Hog farms differ from grain farms in how the following financial characteristics affect farmer creditworthiness: solvency, profitability, and... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Creditworthiness; Credit scoring; Cut-off point; Farm type; FBFM; Agricultural Finance. |
| Ano: 2007 |
URL: http://purl.umn.edu/9356 |
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| Durguner, Seda; Barry, Peter J.; Katchova, Ani L.. |
| This paper uses FBFM (Illinois Farm Business Farm Management Association) data to analyze several key factors in the decision to categorize borrowers into acceptable or problematic and to classify borrowers across five classes. Net worth does not play significant role in the decision process for livestock farms, whereas it is significantly important for crop farms. For livestock farms, tenure ratio is not significant across classes and is generally not significant across categories depending on the cut off point used to describe acceptable or problematic borrower. However, it is significant for crop farms. Working capital to gross farm return, return on farm assets, and asset turnover ratio are all significant for both farm types. The operating expense... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Financial Economics. |
| Ano: 2006 |
URL: http://purl.umn.edu/21431 |
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