Abstract
This paper examines the relative
financial strength and endurance of several paired classes of farmers according
to business maturity (beginning versus mature farm businesses) and farm
operators’ age and experience (young versus older, more experienced farm
operators) by utilizing transition probability approach. Results show that the
financial stress resulting from the late 2000s recession did not significantly
influence the financial vitality of farms in general, regardless of the farm
type. The financial strength of farms operated by young farm operators and
beginning farms during the recessionary period remained at favorable levels,
although their performances were lower than their counterparts.
JEL classification numbers: Q10, Q12, Q14.
Keywords:
Transition
probability, Recession, Agriculture, Credit migration, Agricultural finance.