Do Farm Credit Customers Prefer Lower Interest Rates or Higher Patronage Payments?
| dc.creator | Jorgensen, Quatie | |
| dc.date | 2017-04-01T19:39:47Z | |
| dc.date.accessioned | 2026-07-09T05:42:16Z | |
| dc.description | Farm Credit Services of East Central Oklahoma (FCSECO) is part of a nationwide cooperative that supplies financing for full-time and part-time farmers. FCSECO not only makes loans to farmers but because it is a cooperative, its members/borrowers also benefit from what is known as the patronage payment. The patronage payment is a way of distributing Farm Credit’s profits to its members/borrowers. Since FCSECO is customer-focused and customer-driven, it is essential that the FCSECO Board of Directors knows their customer base and what they desire as a customer. It would benefit FCSECO to determine the substitutability between patronage payments and fixed interest rates. A conjoint survey was conducted on random FCSECO customers. After performing an OLS regression analysis, the results illustrated that the average FCSECO customer values a higher patronage payment more than a lower fixed interest rate on a given loan. This information is valuable to the FCSECO Board of Directors because it shows which attribute the average FCSECO customer has a preference towards. Since the average FCSECO customer greatly values the patronage payment, the FCSECO Board of Directors could use the patronage payment to its advantage in securing new loans. | |
| dc.identifier | doi:10.22004/ag.econ.113242 | |
| dc.identifier | https://ageconsearch.umn.edu/record/113242/files/Paper6.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/113242 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/567226 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/113242 | |
| dc.title | Do Farm Credit Customers Prefer Lower Interest Rates or Higher Patronage Payments? | |
| dc.type | Text |