Effect of Variable Interest Rates on the Financial Performance of Dairy Farm Businesses
LaDue, Eddy L.; Zook, Gordon A.
This paper presents an analysis of the impacts of variable rates on the ability of farmers to meet their debt service obligation. The first section describes the farm situation used and defines the interest rate plans compared. This is followed by a review of the method of analysis employed. Then the effect of variable rates on payment level and variability and on farmers' ability to meet debt service obligations are presented. Finally, some conclusions are drawn.
Charles H. Dyson School of Applied Economics and Management, Cornell University