An Analysis of Lenders' Influence on Agricultural Producers' Risk Management Decisions

Date

1989-12

Authors

Cole, Keith
Rister, M. Edward
Lovell, Ashely C.
Knight, Thomas O.

Journal Title

Journal ISSN

Volume Title

Publisher

Southern Agricultural Economics Association

Abstract

Agricultural lenders have a stake in and are in a position to influence their borrowers' management decisions. Risk management practice adoption is an area in which lenders might want to exercise this influence. This study employs logistic statistical models to estimate lenders' influence on crop producers' decisions regarding use of three alternative risk management practices: federal multiple-peril crop insurance, crop hail and fire insurance, and forward contracting. Results suggest lenders can exert significant influence on these decisions but that poor communication between lenders and borrowers likely reduces this influence.

Description

Keywords

Citation

Knight, T., A. Lovell, M.E. Rister, and K.H. Coble. "An Analysis of Lenders' Influence on Agricultural Producers' Risk Management Decisions." _Southern Journal of Agricultural Economics_ 21.2 (1989): 21-33.