Hostname: page-component-78c5997874-g7gxr Total loading time: 0 Render date: 2024-11-19T17:28:37.315Z Has data issue: false hasContentIssue false
  • English
  • Français

The Impacts of Farm Financial Structure on Production Efficiency

Published online by Cambridge University Press:  28 April 2005

David K. Lambert  and
Volodymyr V. Bayda
David K. Lambert
Affiliation:
Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND
Volodymyr V. Bayda
Affiliation:
Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND
Get access Rights & Permissions [Opens in a new window]

Abstract

Farm financial structure may affect both short- and long-run input usage, thereby affecting farm efficiency. Any inefficiencies arising from the choice of inputs can be magnified over time as credit constraints continue to affect input usage. In a panel of 54 North Dakota crop farms, efficiency and debt structure were related. Intermediate debt was found to be positively related to farm technical efficiency, and short-term debt was negatively associated with technical efficiency. Use of intermediate-term debt was positively associated with farm-scale efficiency, whereas no significant relationship was found between short- and long-term debt and scale efficiency.

Keywords

data envelopment analysisfarm creditfarm efficiencyfinancial structureQ1Q12Q16
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 37 , Issue 1 , April 2005 , pp. 277 - 289
Copyright
Copyright © Southern Agricultural Economics Association 2005

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Baker, C.B. “Credit in the Production Organization of the Firm.” American Journal of Agricultural Economics 50(August 1968):507–21.10.2307/1238256Google Scholar
Barry, P.J., Baker, C.B., and Sanint, L.R.. “Farmers' Credit Risks and Liquidity Management.” American Journal of Agricultural Economics 63(May 1981):216–27.10.2307/1239557Google Scholar
Barry, P.J., and Robinson, L.J.. “Agricultural Finance: Credit, Credit Constraints, and Consequences.” Handbook of Agricultural Economics: Agricultural Production. Gardner, B.L. and Rausser, G.C., eds. Amsterdam: Elsevier Science B.V., 2001.Google Scholar
Chavas, J.P., and Aliber, M.. “An Analysis of Economic Efficiency in Agriculture: A Nonpara-metric Approach.” Journal of Agricultural and Resource Economics 18(July 1993): 1–16.Google Scholar
Ellinger, P.N., and Barry, P.J.. “Agricultural Credit Delivery Costs at Commercial Banks.” Agricultural Finance Review 51(1991):64–78.Google Scholar
Ellinger, P.N., Splett, N.S., and Barry, P.J.. “Consistency of Credit Evaluation Procedures at Agricultural Banks.” Agribusiness: An International Journal 8(Autumn 1992):517–36.10.1002/1520-6297(199211)8:6<517::AID-AGR2720080604>3.0.CO;2-E3.0.CO;2-E>Google Scholar
Färe, R., Grosskopf, S., and Lee, H.. “A Nonpara-metric Approach to Expenditure-Constrained Profit Maximization.” American Journal of Agricultural Economics 72(August 1990):574–81.10.2307/1243026Google Scholar
Färe, R., Grosskopf, S., Noms, M., and Zhang, Z.. “Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries.” American Economic Review 84(March 1994): 66–84.Google Scholar
Featherstone, A.M., and Al-Keraiji, A.A.. “Debt and Input Misallocation of Agricultural Supply and Marketing Cooperatives.” Applied Economics 27(September 1995):871–78.10.1080/00036849500000040Google Scholar
Featherstone, A.M., Langemeier, M.R., and Ismet, M.A.. “Nonparametric Analysis of Efficiency for a Sample of Kansas Beef Cow Farms.” Journal of Agricultural and Applied Economics 29(July 1997): 175–84.Google Scholar
Goodwin, B.K., and Mishra, A.K.. “Farming Efficiency and the Determinants of Multiple Job Holding by Farm Operators. American Journal of Agricultural Economics 86(August 2004): 722–29.10.1111/j.0002-9092.2004.00614.xGoogle Scholar
Greene, W.H. Econometric Analysis, 5th ed. Upper Saddle River, NJ: Prentice-Hall, Inc., 2003.Google Scholar
Jensen, M.C. “Agency Costs of Free Cash Flow, Corporate Finance and Takeovers.” American Economic Review 76(May 1986):323–29.Google Scholar
Kim, M., and Maksimovic, V.. “Debt and Input Misallocation.” The Journal of Finance 45(1990):795–816.10.1111/j.1540-6261.1990.tb05106.xGoogle Scholar
Nasr, R.E., Barry, P.J., and Ellinger, P.N.. “Financial Structure and Efficiency of Grain Farms.” Agricultural Finance Review 58(1998):33–48.Google Scholar
Nin, A., Arndt, C., Hertel, T., and Preckel, P.. “Bridging the Gap between Partial and Total Factor Productivity Measures using Directional Distance Functions.” American Journal of Agricultural Economics 85(November 2003): 928–42.10.1111/1467-8276.00498Google Scholar
Robinson, L.J., and Barry, P.J.. Present Value Models and Investment Analysis. Northport, AL: The Academic Page, 1998.Google Scholar
Rowland, W.W., Langemeier, M.R., Schurle, B.W., and Featherstone, A.M.. “A Nonparametric Efficiency Analysis for a Sample of Kansas Swine Operations.” Journal of Agricultural and Applied Economics 30(July 1998):189–99.Google Scholar