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Toward an Appraisal of the FMHA Farm Credit Program: A Case Study of the Efficiency of Borrowers in Southern Illinois

Published online by Cambridge University Press:  28 April 2015

S. Mehdian ,
Wm. McD. Herr ,
Phil Eberle  and
Richard Grabowski
S. Mehdian
Affiliation:
Department of Finance, Temple University
Wm. McD. Herr
Affiliation:
Department of Agribusiness, Southern Illinois University
Phil Eberle
Affiliation:
Department of Agribusiness, Southern Illinois University
Richard Grabowski
Affiliation:
Department of Economics, Southern Illinois University
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Abstract

A production frontier methodology is used to measure the overall efficiency of a sample of farms obtaining credit from the Farmers Home Administration (FmHA) compared to nonparticipants. The study did not find evidence that the efficiency of FmHA farms improved between 1981 and 1984. Results indicate that the overall efficiency of FmHA borrowers is associated with selected financial characteristics of the farms.

Keywords

Farmers Home Administrationfrontier production functionoverall efficiencyfinancial structure
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 20 , Issue 2 , December 1988 , pp. 93 - 100
Copyright
Copyright © Southern Agricultural Economics Association 1988

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