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The purpose of this paper is to explore the linkage between agricultural sector and macroeconomic factors with farm financial health. It considers whether agricultural lenders can more accurately anticipate changes in the credit quality of their portfolios by considering broad economic indicators outside the agriculture sector.

This paper examines firm, sector, and macroeconomic drivers of probability of default (PD) migrations from a sample of 153 grain farms of actual lender data from Farm Credit Mid-America’s portfolio. A series of ordered logit models are developed.

Farm-level and sector-level variables have the most significant impact on PD migrations. Equity to asset ratios, working capital to gross farm income ratios, and gross corn income per acre are found to be the most significant drivers of PD migrations. Macroeconomic variables are shown to unreliably forecast PD migrations, suggesting that agricultural lenders should emphasize firm and sector variables over macroeconomic factors in credit risk models.

This paper builds the literature on agricultural credit risk by testing a broader set of sector and macroeconomic variables than previous articles. Also, prior articles measured the direction but not magnitude of PD migrations; the ordered model in the analysis measures both.

For agricultural bankers, agribusiness managers, and salespeople, understanding customers and their preferences and behaviors is crucial to success. The two goals of this paper are first to identify today's distinct market segments for financial products for US crop and livestock commercial producers, and second to predict segment membership based on observable characteristics.

Cluster analysis was used to identify four distinct buyer segments for the purchase of financial products and services by US crop and livestock commercial producers. A multinomial logit model was used to predict segment membership based on demographic, behavioral, and business management factors.

Although, traditionally, the financial services industry has segmented the market for commercial producers based primarily on sales/size categories; this research shows that this factor is not a significant predictor of behavior. Instead, this paper proposes a segmentation based on buying behaviors and identify four distinct market segments for financial products and services for US crop and livestock commercial producers: balance, price, convenience, and service. The balance segment being by far the largest segment.

Although the sample size means is representative of the US ag population, it may or may not be representative of the customers of a regional lender. Readers who are lenders are therefore advised to apply this methodology to their customer database and use the results of the paper as a quality check or benchmarking exercise. The findings also raise a number of issues, which require further research, such as how to implement a targeted marketing plan when there is one dominant segment and two other distinct segments.

Lenders need to reconsider their market segmentation methodology.

While there has been some research on market segments for retail financial markets, apparently there has been no work on market segments for agricultural financial products. This study exploits a unique dataset of 2,575 responses to Purdue's Large Commercial Producer Survey and the 2008 survey is the first time the survey included a series of detailed questions on how producers choose a financial service provider. This paper's findings will benefit agricultural bankers and agribusinesses that offer financing to their customers.

This paper describes a comprehensive approach to examine how technological innovation contributes to the renewal of a firm’s competences through its dynamic and reciprocal relationship with R&D and product commercialization. Three theories of technology and innovation (the R&D and technological knowledge concept, product‐process concept, technological interdependence concept) are used to relate technology and innovation to strategic management. Based on these theories, this paper attempts to identify the dynamic relationship between product innovation and process innovation using system dynamics by investigating that aspect of the dynamic changes in the closed feedback circulation structure in which R&D investments drive the accumulation of technological knowledge.

Successful farm business managers must understand the determinants of profitability and have an overall long‐term or strategic management focus. The objective of this research was to explore the use of an e‐learning tool to help producers understand the impacts of different production, pricing, cost control, and investment decisions on their farm’s financial performance. This objective was accomplished by developing and testing a computer‐based training and application tool to facilitate determination of the financial health of farm businesses using the DuPont profitability analysis model. The results of the two experiments indicate that the computer software was effective for teaching techniques of profitability analysis contained within the DuPont model.

This paper examines credit products, operational performance and business models employed by nontraditional lenders (NTLs) in agricultural credit markets.

Two research methods were employed in this study: (1) an executive interview to collect primary data and (2) a case study approach to analyze the findings and develop insights.

The findings indicate the presence of significant differences among lenders across and within three categories of NTLs (large volume, vendor financing and collateral-based NTLs). For example, collateral-based NTLs employ different strategies focusing on types of loans, funding sources, commodities they support and geographic coverage to further segment the market. NTLs in this study were able to capture market by successfully identifying gaps in the supply side of agricultural credit and developing products that meet the needs of that niche (e.g. heavy renters, large operations, producers seeking fixed interest rates for term loans, financially fragile producers). Most of the interviewed NTLs had credit standards comparable to those of traditional lenders and consider them both competitors and partners since many NTLs partner with traditional lenders on participation loans, loan servicing and/or sourcing funds.

The supply side of a nontraditional lending has not been studied extensively due to the proprietary nature of data. The executive interviews conducted in this study allowed for accumulation of industry data, which is not available otherwise.

Supply chain risk (SCR) has been extensively explored in various sectors, yet there is a notable scarcity of SCR studies in the dairy industry. This study aims to identify the primary and distinctive risks in the dairy supply chain (DSC), propose a typological model for SCR, highlight challenges specific to the DSC and offer mitigation strategies.

We employ a systematic literature review to collect and review relevant research articles published between 2010 and 2019 to identify the main risks and mitigation strategies associated with the DSC, enabling the construction of a typological model of DSC risks.

Results of the systematic review of the SCR literature show that the main DSC risks include on-farm risk (e.g. risks originating from the farming system), off-farm risk (e.g. supply risk, demand risk and manufacturing risk) and inherent SCR (e.g. logistics risk, information risk and financial risk). Notably, we find that the farming system plays a key role in today’s agricultural supply chain operations, indicating the importance of considering on-farm risk in the entire DSC. Additionally, mitigation strategies are located in response to the identified DSC risks by the typology of DSC risks.

This paper is the first attempt to develop a typological model of SCR for the dairy industry by a systematic literature review. The findings contribute to providing a comprehensive understanding of DSC risks by bridging the gap of ignoring the on-farm risks of the DSC in the existing literature. The typology may serve as a guide in practice to develop mitigation strategies in response to DSC risks.

The average U.S. farm size has risen dramatically over the last three decades. Motives for this trend are the subject of a large body of literature. This study incorporates farm size risk and return analysis into this research stream. In this paper, cross-sectional and temporal relations between farm size and returns are examined and characterized.

Relying on farm level panel data from Kansas Farm Management Association (KFMA) for 140 farms from 1996 to 2018, this article examines the relationship between farm size and returns and investigates whether farm size is related to risk. Two measures of farm returns are used: excess return on equity and risk-adjusted return on equity. Value of farm production and total farm acres are used as measures of farm size.

Findings suggest a significant and positive relationship between farm size and excess return on equity as well as farm size and risk-adjusted return on equity. However, this return premium associated with farm size is not associated with additional risk. Stated differently, farm size can be viewed as a farm characteristic that is associated with higher return without additional risk.

These findings provide further support for ongoing farm consolidation.

The results suggest the trend towards consolidation in production agriculture is likely to continue. Larger farms bear less risk.

The purpose of this paper is to review the fundamental concept of collaborative supply chain (CSC) and discuss the facts that a road to success in the process of design, implementation and operations of a supply chain is the identification of superior strategies and clear objectives. One of these strategies is known as CSC, that needs to be studied, evaluated and implemented.

Discusses key elements of CSC and the fact that the vision for the CSC can be built upon principles as such as automation, information, trust and commitment, quality leadership, customer focused, collaborative and e‐collaborative partnerships, and integrated information system.

The paper finds that to make supply chain management successful, management must be committed to high standard of performance, trust including long‐term collaborative relationships that can deliver results independent of industry and sector type.

Owing to the fact that a better management of production system is related to the full understanding of the technologies implemented and the system under consideration, the CSC and its related components are discussed.

To develop an understanding of communication among agribusiness journals and to examine patterns of citations that allow the measurement and description of the structure of communication flows among those journals in a network.

The data for this study were gathered from the Journal Citation Reports (JCR) published by Thomson Scientific (Philadelphia). The authors conducted a bibliometric analysis, based on an international trade analogy to explain the network of agribusiness journals and how these journals communicate with business and economics journals.

Business and economics journals and, particularly the traditionally major ones, surprisingly were scarcely every used. However, the British Food Journal stood out with 50 citations to marketing and strategic management journals.

There are predominantly four such limitations: only 33 journals were studied, only one 5-year time period was involved, that time period is a few years old and the journal characteristics were derived using data from the “Scopes” and “Information for Authors” text on the website of each journal.

Exchanges of agribusiness knowledge and information among diverse stakeholders (consumers, suppliers and public agencies) in a complex environment require a better understanding of the network of agribusiness journals and their relation to traditional business and economics journals.

Networks of journals facilitate cooperation and interactions to improve developments in the field.

Examining citations from and to the field of agribusiness is interesting and important because knowledge is transferred through networks comprise those who contribute to journals, read them and learn from them, i.e. by “talking” to each other as well as by practitioners who also read and learn from those journals.

Dynamic demands and constraints imposed by a rapidly changing business environment make it increasingly necessary for companies in the food supply chain to cooperate with each other. The main questions individual (food) companies face are whether, why, how and with whom they should start supply chain management activities. Presents a qualitative research method for analyzing a supply chain network and for identifying effective chain redesign strategies. Presents a generic list of supply chain redesign strategies based on a multi‐disciplinary literature review. Proposes that in order to identify the most effective strategies in a specific chain scenario one should focus on the identification and management of the sources of uncertainties in the supply chain’s decision‐making processes. The application of the research method in three food supply chains resulted in a valuable tool that can be used in supply chain redesign projects, as it indicates potentially effective redesign strategies when a specific source of uncertainty is encountered in a supply chain.