摘要：The 1996 Federal Agriculture Improvement and Reform (FAIR) Act dramaticallyaffects the decision-making environment of farms by introducing provisions forreducing farm income support payments. These program changes are likely toaffect not only farm incomes, but also farm capital asset markets. The combinedeffect of these two financial variables is expected to alter the risk position and thedebt repayment capacity on farms. Empirical results of this analysis indicate thatthe absence of farm income support payments reduces debt repayment capacityand increases the risk position on a representative Louisiana cotton-soybean farm.
关键词：debt repayment; farm policy; financial leverage; safety-first model
