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Cash Flows and Financing in Texas Agriculture*

Published online by Cambridge University Press:  28 April 2015

Lindon J. Robison ,
Peter J. Barry  and
John A. Hopkin
Lindon J. Robison
Affiliation:
Texas A&M University
Peter J. Barry
Affiliation:
Texas A&M University
John A. Hopkin
Affiliation:
Texas A&M University
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Extract

The rapid increase of real estate debt and nonreal estate debt outstanding in the farm sector at the national level is well documented [e.g., 2, 4, 6]. Reasons for these increases include the rapid consolidation of land ownership, continuing adoption of capital intensive technology, greater off-farm purchases of operating inputs, increases in land values, and other such factors. On the one hand the ability of the farm sector to attract this debt is encouraging. Yet, serious questions arise concerning agriculture's liquidity position, repayment capacity, and the actual performance of its finance market. Much of the increased debt came from land sellers, other individuals, and merchants and dealers. None of these are specialized lenders.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 5 , Issue 1 , July 1973 , pp. 187 - 192
Copyright
Copyright © Southern Agricultural Economics Association 1973

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Footnotes

*

Technical article number 10168 of the Texas Agricultural Experiment Station

References

[1]Barry, Peter J., and Hopkin, John A., “Financial Intermediation in Agriculture: A Suggested Analytical Model,” Southern Journal of Agricultural Economics, Vol. 4, No. 1, July 1972.Google Scholar
[2]Brake, J. R., “Impact of Structural Changes on Capital and Credit Needs,” Journal of Farm Economics, 48:1536–1545, Dec. 1966.CrossRefGoogle Scholar
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