FSA direct farm loan program graduation rates and reasons for exiting.

摘要

This article examines actual borrower graduation rates and individuals' reasons for exiting the direct farm loan programme (FLP). To estimate graduation rates and determine reasons for exiting the FSA direct FLP, a survey was conducted in November and December of 2004 to collect information on 2715 direct loans that Farm Service Agency (FSA) borrowers originated during fiscal years 1994-96 in the 48 contiguous states of the USA. A majority of 1994-96 loan originators did exit the direct FLP by November 2004. A multinomial logit model indicates financial strength at origination resulted in greater likelihood of farming without direct loans approximately nine years after loan origination. It is suggested that strengthening financial requirements at time of origination might help but that change must be balanced against excluding those who are the intended beneficiaries of the FSA direct FLP.