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Optimal Agricultural Credit Association Branch Office Locations

Published online by Cambridge University Press:  28 April 2015

Timi M. Scaletta  and
Jeffrey R. Stokes
Timi M. Scaletta
Affiliation:
Frostburg State University, Frostburg, MD and Department of Agricultural Economics and Rural Sociology, The Pennsylvania State University, University Park, PA
Jeffrey R. Stokes
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Pennsylvania State University, University Park, PA
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Abstract

Since the farm financial crisis of the 1980s, Farm Credit System banks continue to merge and consolidate to enhance competitiveness. Two mixed-integer programming models of AgChoice Agricultural Credit Association (ACA), a recently merged ACA in Pennsylvania, were developed to determine the optimal number, location, and territory of branches. The approach suggests useful information can be determined regarding the reconfiguration process after bank mergers, especially given the fact that the current AgChoice ACA configuration is available for comparison purposes.

Keywords

Agricultural Credit Associationcompromise programmingFarm Credit Systemlocation modelmixed-integer programmingC61G21Q14
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 35 , Issue 1 , April 2003 , pp. 127 - 141
Copyright
Copyright © Southern Agricultural Economics Association 2003

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