Life Sciences Commons^™

Examining Farm Financial Management: How Do Small Us Farms Meet Their Agricultural Expenses?, Omobolaji Omobitan, Aditya R. Khanal

Agricultural and Environmental Sciences Faculty Research

Small farms in the US have significant challenges in financial management. This study examines how small farmers undertake farm financial management to meet their agricultural and farm-related spending and expenses. Using primary survey data from Tennessee, the study investigates the factors influencing the extent of use of five financing sources to meet the spending and expenses: cash/fund directly generated from the sale of agricultural products, farmer’s past savings, farm household’s off-farm income, income/incentives from government payments, and external loans. Using negative binomial regression estimation of generalized linear models, findings suggest that the decision on the use of financing sources is …