STOCHASTIC DYNAMIC MODELING: AN AID TO AGRICULTURAL LENDER DECISION MAKING

Factors affecting a lenderÂ’s decision to grant farmers operating credit in North Dakota are quantified in an intertemporal loan profitability model using stochastic dynamic programming. Experimental data obtained from a panel of lenders demonstrates the sensitivity of an optimal policy to changes in a lenderÂ’s discount rate, a borrowerÂ’s repayment status, and patronage. The value of credit scoring models that appraise a borrowerÂ’s credit worthiness also is determined.Agricultural Finance,

Role of Extension in a Research University

University administrators are placing greater emphasis on research and extramural funding in an effort to raise their stature among peer institutions. While Extension faculty could feel threatened, they actually have an opportunity to fill the void in land grant mission being vacated by research and teaching faculty. Assuming great roles in applied research and teaching activities will strengthen traditional Extension programs and provide new opportunities for growth.Teaching/Communication/Extension/Profession,

Exploratory flutter test in a cryogenic wind tunnel

A model consisting of a rigid wing with an integral, flexible beam support that was cantilever mounted from the wall in the NASA LaRC 0.3-m transonic cryogenic tunnel was used in a flutter analysis study. The wing had a rectangular planform of aspect ratio 1.5 and a 64A010 airfoil. Various considerations and procedures for conducting flutter tests in a cryogenic wind tunnel were evaluated. Flutter onset conditions were established from extrapolated subcritical response measurements. A flutter boundary was determined at cryogenic temperatures over a Mach number M range from 0.5 to 0.9. Flutter was obtained at two different Reynolds numbers R at M = 0.5 (R = 4.4 and 18.4 x 10 to the 6th power) and at M = 0.8 (R = 5.0 and 10.4 x 10 to the 6th power). Flutter analyses using subsonic lifting surface (kernel function) aerodynamics were made over the range of test conditions. To evaluate the Reynolds number effects at M = 0.5 and 0.8, the experimental results were adjusted using analytical trends to account for differences in the model test temperatures and mass ratios. The adjusted experimental results indicate that increasing Reynolds number from 5.0 to 20.0 x 10 to the 6th power decreased the dynamic pressure by 4.0 to 6.5 percent at M = 0.5 and 0.8

RURAL SMALL BUSINESS FINANCE: EVIDENCE FROM THE 1998 SURVEY OF SMALL BUSINESS FINANCES

The 1998 Survey of Small Business Finances provides robust information on the financing of small businesses including an overview of their firm's organization, financial characteristics, and credit use. Information from the survey is used in this study to compare the financial characteristics of urban and rural small businesses. Overall, rural small businesses have very similar financial characteristics, access to technology and financial services, sources of financial capital, and creditworthiness when compared to urban small businesses. Nonparametric rank order statistical methods were required when comparing dollar values of urban and rural small businesses because normality assumptions were violated due to the high concentration of small firms. On average, rural and urban small businesses were strong financially and profitable. Accounts receivable and inventory comprise nearly a third of total assets. Most were organized as either sole proprietorships or corporations. The majority of small businesses utilized computers, primarily for accounting/bookkeeping, administration, and email. Primary financial services are used for transactions and trade credit. Two-thirds of purchases involve trade credit from more than 20 trade credit suppliers, on average. Both urban and rural small businesses rely on a wide variety of sources for financing and use each to the same degree. Rural small businesses possess higher creditworthiness, but nearly one-fourth still report being delinquent on business obligations.rural, small, business, finances, survey, Community/Rural/Urban Development,

RABOBANK'S OFFER TO PURCHASE FARM CREDIT SERVICES OF AMERICA -- A CASE STUDY

Rabobankâs offer to purchase Farm Credit Services of America (FCSA) for $600 million was a surprise because few people ever envisioned 1) fragmentation of the Farm Credit System and/or 2) a foreign lender gaining large market share of U.S. agricultural financial markets. Although FCSA has formally rejected the offer, the action has generated intense public debate about cooperative dividend policy, capital adequacy standards, government sponsored entity (GSE) status of the Farm Credit System and credit gaps in rural America. This case study provides a brief overview of FCSA, Rabobank, and motivation for the purchase offer. Next, the actual deal and timeline for implementation are described, had the offer to buy been accepted by FCSA. Finally, lingering issues raised by the offer are discussed. These issues will likely be important topics of deliberation in forthcoming federal farm and agricultural credit program legislation.agricultural finance, capital dividend, policy, government sponsored entity, Agricultural Finance,

Financing Growth of Cellulosic Ethanol

The U.S. biofuel industry is striving to produce ethanol from cellulosic feedstock sources in an effort to augment its existing corn grain-based ethanol production infrastructure. Technology to commercially produce cellulosic ethanol is rapidly advancing due in large part to the availability of substancial federal research and development funding. At the moment, several firms have pilot scale cellulosic ethanol production facilities under construction and testing. The transition from pilot scale to full commercialization of cellulosic ethanol will be difficult, due in large part financial constraints being imposed both internally and externally on the biofuels industry. This paper provides an overview of the biofuel industry’s current financial setting and describes future challenges it faces in attempting to expand. These challenges are rooted in lack of industry capital, limited availability of performance benchmarks, concerns regarding future prospects of the industry, and general uncertainty in U.S. financial markets. If the U.S. biofuels industry is unable to capitalize and develop this next phase of growth, foreign competitors, primarily Brazil and Mexico, appear well positioned to fill U.S. consumer’s demand for advanced biofuels.biofuel cellulosic ethanol finance investment risk, Agricultural Finance, Resource /Energy Economics and Policy,

WHEN DO STUDENTS WORK?

This study examines test taking patterns of students enrolled in an introductory economics class who could complete their exams electronically at any time-of-day or day-of-week. Exam completion patterns are related to several student characteristics including gender, class rank, major, and whether the student was enrolled online. Statistical differences in both time-of-day and day-of-week were observed across these strata and related to overall performance. The majority of students completed their exams in late evening time periods, which negatively affected overall performance. These results have important implications for educators and may partially explain past anomalous results in other studies of student study habits.distant education, exam completion patterns, learning styles, online classes, students' work, study habits, Teaching/Communication/Extension/Profession,