Nontraditional credit in the Wisconsin dairy industry

IF 1.5 Q3 AGRICULTURAL ECONOMICS & POLICY

Agricultural Finance Review Pub Date : 2021-09-24 DOI:10.1108/afr-05-2021-0068

A. Stevens

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引用次数: 2

Abstract

PurposeThe purpose of this article is to document and evaluate patterns of nontraditional credit use among Wisconsin dairy farmers. Using a survey-based case study approach, this article analyzes farmer and farm characteristics, farmers’ utilization of credit and farmers’ perceptions of nontraditional lenders. The findings are connected to ongoing structural change in the dairy sector and economic theories of trade credit.Design/methodology/approachData were collected using an incentivized online survey of Wisconsin dairy farmers distributed through existing university and industry networks. A total of 16 farmers completed the survey. The sample is treated as a focus group case study, and participants’ responses are examined using summary statistics and correlational analyses to describe emergent patterns in the industry.FindingsAmong survey respondents who utilize agricultural credit, nearly 80% (11 of 14) borrow from at least one nontraditional lender, and nontraditional credit comprises 17% of their total borrowing, on average. Much of this borrowing occurs through the financial arm of a vendor and is used to finance equipment or machinery purchases. Despite widespread use of nontraditional credit, no surveyed farmers preferred nontraditional lenders over traditional lenders.Originality/valueThis is the first study to analyze the use of nontraditional credit specifically among Wisconsin dairy farmers. Dairy farming is a capital-intensive endeavor, and recent structural change in the sector has increased surviving dairy farmers' demand for credit.

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威斯康辛乳业的非传统信贷

本文的目的是记录和评估威斯康星州奶农的非传统信贷使用模式。本文采用基于调查的案例研究方法，分析了农民和农场的特征、农民对信贷的利用以及农民对非传统贷款人的看法。这些发现与乳制品行业正在进行的结构性变化和贸易信贷的经济理论有关。设计/方法/方法数据是通过现有的大学和行业网络对威斯康星州奶农进行的激励在线调查收集的。共有16名农民完成了调查。该样本被视为焦点小组案例研究，并使用汇总统计和相关分析来检查参与者的回答，以描述行业中的新兴模式。在利用农业信贷的调查受访者中，近80%(14人中有11人)至少从一家非传统贷款机构借款，而非传统信贷平均占其总借款的17%。这种借款大部分是通过供应商的财务部门进行的，用于购买设备或机器。尽管非传统信贷被广泛使用，但没有接受调查的农民更喜欢非传统贷款机构。原创性/价值这是第一个专门分析威斯康星州奶农使用非传统信贷的研究。奶牛养殖是一项资本密集型产业，最近该行业的结构性变化增加了存活下来的奶农对信贷的需求。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Agricultural Finance Review AGRICULTURAL ECONOMICS & POLICY-

CiteScore

3.70

自引率

18.80%

发文量

期刊介绍： Agricultural Finance Review provides a rigorous forum for the publication of theory and empirical work related solely to issues in agricultural and agribusiness finance. Contributions come from academic and industry experts across the world and address a wide range of topics including: Agricultural finance, Agricultural policy related to agricultural finance and risk issues, Agricultural lending and credit issues, Farm credit, Businesses and financial risks affecting agriculture and agribusiness, Agricultural policies affecting farm or agribusiness risks and profitability, Risk management strategies including the use of futures and options, Rural credit in developing economies, Microfinance and microcredit applied to agriculture and rural development, Financial efficiency, Agriculture insurance and reinsurance. Agricultural Finance Review is committed to research addressing (1) factors affecting or influencing the financing of agriculture and agribusiness in both developed and developing nations; (2) the broadest aspect of risk assessment and risk management strategies affecting agriculture; and (3) government policies affecting farm profitability, liquidity, and access to credit.