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A production frontier methodology is used to measure the overall efficiency of a sample of farms obtaining credit from the Farmers Home Administration (FmHA) compared to nonparticipants. The study did not find evidence that the efficiency of FmHA farms improved between 1981 and 1984. Results indicate that the overall efficiency of FmHA borrowers is associated with selected financial characteristics of the farms.

Toward an Appraisal of the FMHA Farm Credit Program: A Case Study of the Efficiency of Borrowers in Southern Illinois