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Authors: Vandeveer, Lonnie R.
Henning, Steven A.
Kennedy, Gary A.
Li, Chunxiao
Keywords: debt repayment
farm policy
financial leverage
safety-first model
Issue Date: 2000
Abstract: The 1996 Federal Agriculture Improvement and Reform (FAIR) Act dramatically affects the decision-making environment of farms by introducing provisions for reducing farm income support payments. These program changes are likely to affect not only farm incomes, but also farm capital asset markets. The combined effect of these two financial variables is expected to alter the risk position and the debt repayment capacity on farms. Empirical results of this analysis indicate that the absence of farm income support payments reduces debt repayment capacity and increases the risk position on a representative Louisiana cotton-soybean farm.
Institution/Association: Journal of Agribusiness>Volume 18, Number 3, Fall 2000
Total Pages: 11
Language: English
From Page: 237
To Page: 247
Collections:Volume 18, Number 3, Fall 2000

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