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Analysis of Economic Emergency Loan Allocations and Credit Market Expansion

Published online by Cambridge University Press:  28 April 2015

Lewell Gunter ,
Webb M. Smathers Jr. ,
Michael C. Ingram  and
Robert Dubman
Lewell Gunter
Affiliation:
Department of Agricultural Economics, University of Georgia
Webb M. Smathers Jr.
Affiliation:
Department of Agricultural Economics, University of Georgia
Michael C. Ingram
Affiliation:
Department of Agricultural Economics, University of Georgia
Robert Dubman
Affiliation:
Department of Agricultural Economics, University of Georgia
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Abstract

The Economic Emergency (EE) loan program, administered by the FmHA, was created by Congress in 1978. The primary purpose of the program was to provide credit to farmers who were unable to obtain credit from normal lenders due to economic stress. Over six billion dollars of EE loans were extended nationally during fiscal years 1978 through 1981. This paper examines the allocation of EE loans at the state level and the expansionary effect of the program on farm credit markets. Empirical evidence is provided that EE funds were allocated to states consistently with the general criteria cited in the development of the EE program and that the EE program expanded farm credit markets rather than displacing loans from other sources.

Keywords

Economic Emergency loansfarm creditFarmers Home Administration
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 17 , Issue 2 , December 1985 , pp. 21 - 32
Copyright
Copyright © Southern Agricultural Economics Association 1985

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