An empirical investigation of farm mortgage loan borrowers

Cross‐sectional data from a 1981 survey of Saskatchewan farmers are used to investigate the determinants of size of long‐term loans from the Canadian Farm Credit Corporation. Heckman's procedure is used to correct for sample selectivity bias, which was shown to be present. The results are tenta...

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Bibliographic Details
Published in:Agribusiness (New York, N.Y.) N.Y.), 1985, Vol.1 (2), p.185-192
Main Authors: Van Kooten, G. C., Arthur, Louise M.
Format: Article
Language:English
Subjects:
Agricultural banking
Agricultural economics
Agricultural lending
Agriculture
Bank Act-Canada
Bias
Credit policy
Current liabilities
Farmers
Farms
Loans
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Summary:Cross‐sectional data from a 1981 survey of Saskatchewan farmers are used to investigate the determinants of size of long‐term loans from the Canadian Farm Credit Corporation. Heckman's procedure is used to correct for sample selectivity bias, which was shown to be present. The results are tentative due to the cross‐sectional properties of the data. They seem to show that the Farm Credit Corporation is fulfilling its stated aims in lending to new, young, small operators but emphasizing ability to repay the loan.
ISSN:0742-4477
1520-6297
DOI:10.1002/1520-6297(198522)1:2<185::AID-AGR2720010207>3.0.CO;2-U