Crop insurance's impact on commercial bank loan volumes: Theory and evidence

• Published in: Review of agricultural economics Vol. 46; no. 1; pp. 318 - 337
• Main Authors: Ifft, Jennifer, Kuethe, Todd H, Lyons, Gregory, Schultz, Alexander, Zhu, John Y
• Format: Journal Article
• Language: English
• Published: Cary John Wiley & Sons, Inc 01.03.2024
• Subjects: Agricultural credit; Agricultural production; Agriculture; Banks; Crop insurance; Crops; Insurance; Plant protection

Crop insurance protects lenders by increasing the likelihood of loan repayment when revenue declines. We develop a theoretical mode that explains the role of crop insurance in agricultural lending and how impacts may be different for lenders that are not specialized in agricultural lending. We then...