bluuebunny/crossref_metadata_2025 huggingface dataset:
Assessment of Liver Fibrosis and Cirrhosis by Aspartate Aminotransferase‐to‐Platelet Ratio Index in Children With Biliary Atresia
Authors: Kim Sang Yong , Seok Jae Yeon , Han Seok Joo , Koh Hong
Published: June 2010

Background:

In patients with biliary atresia (BA), liver fibrosis and cirrhosis commonly occur even after Kasai hepatoportoenterostomy. Although liver biopsy is the gold standard to evaluate liver fibrosis, it is invasive and may result in life‐threatening complications. The aspartate aminotransferase‐to‐platelet ratio index (APRI) is a safe and simple method to assess liver fibrosis in patients with chronic liver diseases. To use APRI as a postoperative follow‐up tool, we validated the diagnostic power of APRI for the degree of liver fibrosis in postoperative patients with BA.

Patients and Methods:

Patients with newly diagnosed BA who underwent the Kasai procedure between March 2006 and May 2009 were analyzed. Several laboratory tests including APRI were performed. Liver wedge biopsy specimens were obtained during the surgical procedure, and histopathologic analyses were performed using the Metavir classification.

Results:

Thirty‐five patients (12 boys, median age of 1.9 months) were enrolled. Metavir scores were F1 in 0, F2 in 11, F3 in 11, and F4 in 13 patients. The areas under the receiver operating characteristics curves for F ≥ 3 and F = 4 were 0.92 and 0.91, respectively. Distinct optimal cutoff values of APRI for F ≥ 3 and F = 4 were obtained (1.01 and 1.41, respectively). Clinical outcomes of patients were significantly different between 2 groups (noncirrhosis vs cirrhosis) based on APRI before and 3 months after the Kasai procedure.

Conclusion:

APRI may be used as a simple and readily available tool for assessing liver fibrosis without additional risks in patients with BA during postoperative follow‐up care.
Familial Resemblance of Bone Mineral Density in Children With Inflammatory Bowel Disease
Authors: Schmidt Susanne , Mellström Dan , Norjavaara Ensio , Sundh Valter , Saalman Robert
Published: June 2010

Background and Aim:

Low bone mineral density (BMD) has recently been recognized as a potential health problem in children with inflammatory bowel disease (IBD). Our aim was to investigate the familial resemblance of BMD in pediatric patients with IBD.

Patients and Methods:

In this population‐based study from western Sweden, we assessed 144 children with IBD, 83 with ulcerative colitis, 45 with Crohn disease, 16 with indeterminate colitis, and their parents (136 mothers and 130 fathers) with dual‐energy X‐ray absorptiometry (DEXA). After adjustment for sex, age, weight, height, and parental IBD, we correlated the BMD of the patients to the BMD of their mothers, fathers, and the midparent value ([mother's BMD + father's BMD]/2) at different skeletal sites and calculated the Pearson correlation coefficient (r) to evaluate the extent of familial resemblance.

Results:

The BMD of the children with IBD was clearly related to the BMD of their parents. The strongest correlation was found in the femoral neck with r = 0.55 (P < 0.001, 95% CI 0.41–0.66) between BMD of the children and the midparent value. The group of children with IBD had an odds ratio of 5.96 for decreased BMD (lumbar spine z score < −1 standard deviation) given that decreased BMD was diagnosed in both parents.

Conclusions:

We conclude that BMD in children and adolescents with IBD is significantly related to that of their parents. In a clinical setting, it may be helpful to assess the parents of children with IBD with DEXA to interpret the children's DEXA measurements.
Safety and Efficacy of a Lipid Emulsion Containing a Mixture of Soybean Oil, Medium‐chain Triglycerides, Olive Oil, and Fish Oil: A Randomised, Double‐blind Clinical Trial in Premature Infants Requiring Parenteral Nutrition
Authors: Tomsits Erika , Pataki Margit , Tölgyesi Andrea , Fekete György , Rischak Katalin , Szollár Lajos
Published: June 2010

Objectives:

Safety, tolerability, and efficacy of a novel lipid emulsion containing a mixture of soybean oil, medium‐chain triglycerides, olive oil, and fish oil (SMOFlipid 20%) with reduced n‐6 fatty acids (FA), increased monounsaturated and n‐3 FA, and enriched in vitamin E were evaluated in premature infants compared with a soybean oil–based emulsion.

Patients and Methods:

Sixty (30/30) premature neonates (age 3–7 days, gestational age ≤34 weeks, birth weights 1000–2500 g) received parenteral nutrition (PN) with either SMOFlipid 20% (study group) or a conventional lipid emulsion (Intralipid 20%, control group) for a minimum of 7 up to 14 days. Lipid supply started at 0.5 g · kg body weight−1 · day−1 on day 1 and increased stepwise (by 0.5 g) up to 2 g · kg body weight−1 · day−1 on days 4 to 14. Safety and efficacy parameters were assessed on days 0, 8, and 15 if PN was continued.

Results:

Adverse events, serum triglycerides, vital signs, local tolerance, and clinical laboratory did not show noticeable group differences, confirming the safety of study treatment. At study end, γ‐glutamyl transferase was lower in the study versus the control group (107.8 ± 81.7 vs 188.8 ± 176.7 IU/L, P < 0.05). The relative increase in body weight (day 8 vs baseline) was 5.0% ± 6.5% versus 5.1% ± 6.6% (study vs control, not significant). In the study group, an increase in n‐3 FA in red blood cell phospholipids and n‐3:n‐6 FA ratio was observed. Plasma α‐tocopherol (study vs control) was increased versus baseline on day 8 (26.35 ± 10.03 vs 3.67 ± 8.06 μmol/L, P < 0.05) and at study termination (26.97 ± 18.32 vs 8.73 ± 11.41 μmol/L, P < 0.05).

Conclusions:

Parenteral infusion of SMOFlipid was safe and well tolerated and showed a potential beneficial influence on cholestasis, n‐3 FA, and vitamin E status in premature infants requiring PN.
Emended description of Yersinia massiliensis
Authors: Souza Roberto A. , Falcão Deise P. , Falcão Juliana P.
Published: June 2010

The bacterial genus Yersinia belongs to the family Enterobacteriaceae and comprises 15 species. Species of the genus Yersinia are usually identified by their phenotypic characteristics. Thus, it is essential to establish a complete phenotypic classification for all species of the genus Yersinia. The species Yersinia massiliensis was proposed in 2008, based on 16S rRNA, gyrB, hsp60, rpoB and sodA gene sequences and some distinguishing phenotypic characteristics. In this study, four Yersinia strains classified as Y. massiliensis based on the sequencing of the loci mentioned above were subjected to a more detailed phenotypic characterization. This characterization revealed differences in the results of four tests previously reported as diagnostic for Y. massiliensis and the results of 18 additional tests provided new information about the biochemical diversity of this species. In the light of the results of the phenotypic characteristics of the four strains of Y. massiliensis, an emended description of Y. massiliensis is presented.
Bacillus nanhaiisediminis sp. nov., an alkalitolerant member of Bacillus rRNA group 6
Authors: Zhang Jianli , Wang Jiewei , Song Fei , Fang Caiyuan , Xin Yuhua , Zhang Yabo
Published: June 2010

A Gram-stain-positive, rod-shaped bacterium, designated strain NH3T, was isolated from a sediment sample from the South China Sea and was subjected to a polyphasic taxonomic study. The isolate grew optimally at 37 °C and pH 9. Strain NH3T had cell-wall peptidoglycan based on meso-diaminopimelic acid and MK-7 as the predominant menaquinone. The cellular fatty acid profile included significant amounts of iso-C15 : 0 and iso-C14 : 0. The major polar lipids were phosphatidylethanolamine, phosphatidylglycerol and diphosphatidylglycerol. The DNA G+C content of strain NH3T was 40.3 mol%. Phylogenetic analysis of the 16S rRNA gene sequence revealed that strain NH3T was a member of rRNA group 6 of the genus Bacillus, which includes alkalitolerant, alkaliphilic and halotolerant species. The closest phylogenetic relatives were Bacillus akibai 1139T (96.82 % 16S rRNA gene sequence similarity), B. pseudofirmus DSM 8715T (96.76 %), B. okhensis Kh10-101T (96.76 %) and B. alkalidiazotrophicus MS 6T (96.47 %). Strain NH3T could be distinguished from these phylogenetically close neighbours based on a number of phenotypic properties. On the basis of phenotypic and chemotaxonomic characteristics and phylogenetic data, we conclude that strain NH3T ( = CGMCC 1.10116T  = JCM 16507T) merits classification as the type strain of a novel species, for which the name Bacillus nanhaiisediminis sp. nov. is proposed.
Auraticoccus monumenti gen. nov., sp. nov., an actinomycete isolated from a deteriorated sandstone monument
Authors: Alonso-Vega Pablo , Carro Lorena , Martínez-Molina Eustoquio , Trujillo Martha E.
Published: June 2010

A Gram-type-positive, strictly aerobic actinobacterium, designated strain MON 2.2T, was isolated from the surface of a sandstone monument. Cells with a coccoid shape, arranged in pairs or clusters, were non-motile and did not produce spores. The 10 closest 16S rRNA gene sequence matches (~95 % similarity) found in the public databases were uncultured actinobacteria, while the closest cultured members indicated a phylogenetic relationship with members of the familyPropionibacteriaceae(92–95 % similarity). Subsequent phylogenetic analysis placed the new isolate within the radiation of the generaFriedmanniellaandMicrolunatus, but forming an independent branch. Chemotaxonomic markers were consistent with the classification of strain MON 2.2Tin the familyPropionibacteriaceae, amongst the genera containingll-diaminopimelic acid in their peptidoglycan. Characteristic fatty acids iso-C15 : 0and anteiso-C15 : 0also supported its affiliation to this taxon; however, polar lipid and menaquinone compositions clearly differentiated strain MON 2.2Tfrom other genera in the family. On the basis of these results and additional physiological data obtained in the present study, it is proposed that strain MON 2.2Tbe classified in a novel species in a new genus, for which the nameAuraticoccus monumentigen. nov., sp. nov. is proposed. The type strain ofAuraticoccus monumentiis MON 2.2T( = CECT 7672T = DSM 23257T = LMG 25551T).
Arabidopsis Small Ubiquitin-Like Modifier Paralogs Have Distinct Functions in Development and Defense
Authors: van den Burg Harrold A. , Kini Ramachandra K. , Schuurink Robert C. , Takken Frank L.W.
Published: June 2010

Posttranslational modifications allow dynamic and reversible changes to protein function. In Arabidopsis thaliana, a small gene family encodes paralogs of the small ubiquitin-like posttranslational modifier. We studied the function of these paralogs. Single mutants of the SUM1 and SUM2 paralogs do not exhibit a clear phenotype. However, the corresponding double knockdown mutant revealed that SUM1 and SUM2 are essential for plant development, floral transition, and suppression of salicylic acid (SA)–dependent defense responses. The SUM1 and SUM2 genes are constitutively expressed, but their spatial expression patterns do not overlap. Tight transcriptional regulation of these two SUM genes appears to be important, as overexpression of either wild-type or conjugation-deficient mutants resulted in activation of SA-dependent defense responses, as did the sum1 sum2 knockdown mutant. Interestingly, expression of the paralog SUM3 is strongly and widely induced by SA and by the defense elicitor Flg22, whereas its expression is otherwise low and restricted to a few specific cell types. Loss of SUM3 does not result in an aberrant developmental phenotype except for late flowering, while SUM3 overexpression causes early flowering and activates plant defense. Apparently, SUM3 promotes plant defense downstream of SA, while SUM1 and SUM2 together prevent SA accumulation in noninfected plants.
Internalization of Flax Rust Avirulence Proteins into Flax and Tobacco Cells Can Occur in the Absence of the Pathogen
Authors: Rafiqi Maryam , Gan Pamela H.P. , Ravensdale Michael , Lawrence Gregory J. , Ellis Jeffrey G. , Jones David A. , Hardham Adrienne R. , Dodds Peter N.
Published: June 2010

Translocation of pathogen effector proteins into the host cell cytoplasm is a key determinant for the pathogenicity of many bacterial and oomycete plant pathogens. A number of secreted fungal avirulence (Avr) proteins are also inferred to be delivered into host cells, based on their intracellular recognition by host resistance proteins, including those of flax rust (Melampsora lini). Here, we show by immunolocalization that the flax rust AvrM protein is secreted from haustoria during infection and accumulates in the haustorial wall. Five days after inoculation, the AvrM protein was also detected within the cytoplasm of a proportion of plant cells containing haustoria, confirming its delivery into host cells during infection. Transient expression of secreted AvrL567 and AvrM proteins fused to cerulean fluorescent protein in tobacco (Nicotiana tabacum) and flax cells resulted in intracellular accumulation of the fusion proteins. The rust Avr protein signal peptides were functional in plants and efficiently directed fused cerulean into the secretory pathway. Thus, these secreted effectors are internalized into the plant cell cytosol in the absence of the pathogen, suggesting that they do not require a pathogen-encoded transport mechanism. Uptake of these proteins is dependent on signals in their N-terminal regions, but the primary sequence features of these uptake regions are not conserved between different rust effectors.
Corporate social responsibility: a strategic issue or a wasteful distraction?
Authors: Holme Charles
Published: June 2010

Purpose

This paper aims to provide a rigorous practitioner review of the concept of CSR. The paper presents a comprehensive and sometimes challenging overview of the subject. It is about the practice and ethics of a topic of current interest.

Design/methodology/approach

Taking a representative selection of recently published papers, the article explores the concept. Questions are raised about whether CSR is just corporate window dressing – or greenwash. Can it be a tool for business development? Is CSR for organizations big and small? Does it apply to government and NGOs or is it only for commercial businesses? Has the current economic climate forced companies to abandon CSR in the face of the harsh realities of the recession?

Findings

The findings start with the variation in the subject and how the words corporate social responsibility are ill defined. A structure for examining CSR in practice is suggested by using two examples. Benefits of CSR in profit based organizations are identified and compared with an example in a not for profit organization. An argument is put forward that SMEs may not relate comfortably to a corporate concept. The strategic role of CSR is outlined, as is the limited role of government. Directors' responsibility and CSR lead on to the competitive advantage opportunities of CSR. The article ends with a key indicator of whether businesses see CSR as a distraction or a strategic issue by looking at evidence of whether CSR activity has declined in the current recession.

Practical implications

This is essential reading for strategic leaders reviewing their CSR activity, whether it is from a position of early implementation or after some development. The comparisons and examples are thought provoking. By raising the variations in practise senior managers will be able to clarify their own position, formulate a way forward and communicate their objectives.

Originality/value

This paper is aimed at directors and strategic leaders with an interest in linking CSR, ethics and competitive advantage. The article will also help senior managers to reflect upon their own management style. HR practitioners will find this review indispensible if they wish to lead or contribute to the development of CSR in their own organizations.
Using meaningful coaching for maximum results
Authors: Mertel Tina
Published: June 2010

Purpose

This paper is for coaches (or those who coach) to consider: how their own values affect the coaching interaction; and how customizing their communication to align with the client's values can create better results. The paper aims to address these issues.

Design/methodology/approach

This paper references the strength deployment inventory and relationship awareness theory as the suggested methodology in understanding one's values.

Findings

The paper advocates that, no matter which coaching system or methodology is used, that a focus on values is important to the success of the coaching interaction. Values are integral to the coach and the client, and should be given attention in the coaching process.

Originality/value

This paper looks at the impact of values on the coaching process.
Smoothing the path of integration
Authors: Hawthorne Michael
Published: June 2010

Purpose

This paper aims to underline the importance of the training and communications process in implementing business integration solutions, securing employee commitment and building a customer‐centric culture. Also, to demonstrate how the benefits of a systematic based approach can help organizations by improving customer service skills and building effective teams.

Design/methodology/approach

These points are illustrated through the use of a supporting case study example that describes the process. Initial research and consultation with management and staff was used to understand issues and anxieties and identify skills gap. Results are used to inform the strategy development and to agree how the required information needs to be presented to achieve maximum buy‐in. In the case of Trend, the training and communications process commenced with an introductory letter from the managing director to introduce the aims of the program. The program was delivered in two streams which were cascaded down through the organizations: managers attended a two day workshop to build coaching skills and reinforce service skills. The rest of the company attended a two day interactive workshop focusing on the service excellence and looking at customer/employee integration.

Findings

Tangible and measurable results from training initiatives can sometimes take a long time, but at Trend there was an immediate impact in staff morale, motivation and departmental communications with a plethora of glowing internally referenced e‐mails supporting the increase in service standards. More importantly, the difference has been recognized by Trend's customers and acknowledged in a series of congratulatory testimonials.

Originality/value

This paper demonstrates the value of a strategic approach to learning and managing change – increasing motivation, improving departmental communications and raising service standards.
Don't just read it, live it!
Authors: Ladd Everett , Ladd Antigoni
Published: June 2010

Purpose

This paper is based on actual teaching experience and aims to demonstrate the value of using historic role models, events, visits, and story telling to help students retain leadership concepts.

Design/methodology/approach

Examples from leadership programs based on Abraham Lincoln, Winston Churchill, Dwight D. Eisenhower, Clara Barton, and Fredrick Douglass, illustrate how powerful stories and site visits drive home key concepts and ensure the message stays with the audience over time.

Findings

Colorful stories not only make learning interesting, they drive home key concepts in a way that is easy to grasp and twice as likely to be retained. Programs based on historic role models gain added poignancy by being held in historic sites, near museums, battlefields, and historic homes. Add a visit by a reenactor, and participants find themselves drawn into the case study emotionally, as they “re‐live” historic events and discover the relevance to the contemporary workplace and its challenges. These tools of “active learning” demonstrate how individuals who experience a lesson have greater understanding of the material presented, longer‐term recall, and greater problem‐solving skills than is the norm with traditional, passive learning.

Practical implications

While some organizations balk at the cost of “field trips” for training, others recognize the long‐term benefits of engaging participants in active (vs passive) learning. Teaching through historical analogy should be encouraged for its longer‐term lesson retention.

Originality/value

At a time when organizations are increasing the use of “distance learning” or computer‐based training, it is important to evaluate the use of off‐site programs in terms of learning retention – particularly in the field of leadership development, an area of critical need in many organizations.
Increasing productivity with social learning
Authors: Emelo Randy
Published: June 2010

Purpose

This paper aims to examine e‐mentoring's impact on productivity and introduce readers to social learning.

Design/methodology/approach

Researchers used a ten‐question survey to determine e‐mentoring's impact on personal productivity/effectiveness and organizational success, as well as to identify specific areas of impact.

Findings

A total of 88 percent said mentoring contributed to their increased productivity. A total of 31 percent said their productivity/effectiveness improved by 30 percent or more. The top three ways of mentoring contributed to increased productivity: expanding my network, interpersonal effectiveness, and confidence in role.

Research limitations/implications

Further research on social learning would be valuable.

Practical implications

Supporting social learning will help capture and formalize informal learning and will impact productivity.

Originality/value

All content is new. Readers will access latest research and trends in e‐mentoring.
Means and ends: effective training evaluation
Authors: Paul Griffin Richard
Published: June 2010

Purpose

This paper aims to briefly review the current state of and rationale for workplace training evaluation, explain the barriers that prevent wide scale and effective evaluation and provide practitioners with a novel training evaluation approach.

Design/methodology/approach

The article is based on a critical review of current approaches to and literature on training evaluation and the author's own research into the impact of learning on NHS productivity.

Findings

Whilst national governments stress the importance of workplace skills development as a central element of economic growth and organizations invest substantial amounts in training, very few private firms or public sector organizations actually review learning's impact on individuals, teams or organizational results.

Practical implications

This paper proposes that a range of factors inhibit effective training evaluation. These include the complexity of workplace learning and, crucially, weaknesses in current evaluation processes and tools. In response, the author sets out a novel systematic evaluation process aimed at assisting practitioners in meeting these challenges.

Originality/value

The approach builds on the economic theory of productivity to create a metric of costs and benefits to allow organizations to assess the impact of learning. It is hoped the approach will firstly, contribute to the debate about how training should be evaluated; secondly, bridge the gap between academic research and practitioner needs and finally, provide a scientifically robust but practitioner friendly means of evaluation.
An analysis of risk premia in U.S. farm‐level interest rates
Authors: Goodwin Barry K. , Mishra Ashok K.
Published: June 2010

Much farm financial risk research has involved the application of “credit‐scoring” models. We approach the issue of measuring financial risk by using the actual interest rates charged on agricultural loans reported in the USDA’s ARMS survey as market‐based measures of the financial risk associated with individual farm operations. A simultaneous equations model relates rates to several farm, producer, and lender characteristics. Because individual loans in our sample have different dates of origination, deviations of individual rates from market rates are considered. Our results indicate that risk (as perceived by lenders) tends to be higher for farms with less wealth (net worth) and more loans. Farm operators who live on their operations are considered by lenders to be less risky. Farm diversification appears to be correlated with less financial risk. Significant differences in agricultural lending rates across different types of lenders were also revealed, with the highest rates being charged by commercial banks and savings and loans. A key element of our analysis is development of a probability‐weighted bootstrap estimator that permits consistent inferences to be drawn from the stratified ARMS data.
Deciding when to replace an open beef cow
Authors: Ibendahl Gregory A. , Anderson John D. , Anderson Leslie H.
Published: June 2010

A cow that fails to conceive must either be kept for a year without revenue or replaced by a bred heifer. This choice is a unique case of comparing investments with different economic lives because the potential replacement asset is just a newer version of the old asset. In this study, a net present value model is developed that eliminates the problem of finding a common timeframe. Results indicate there are often times producers should keep the open cow. Whenever feed costs are low, the price differential between cull cows and replacement heifers is high, or the calf crop value is low, retaining open cows becomes more desirable.
The Dupont profitability analysis model: an application and evaluation of an e‐learning tool
Authors: Melvin Jon , Boehlje Michael , Dobbins Craig , Gray Allan
Published: June 2010

Successful farm business managers must understand the determinants of profitability and have an overall long‐term or strategic management focus. The objective of this research was to explore the use of an e‐learning tool to help producers understand the impacts of different production, pricing, cost control, and investment decisions on their farm’s financial performance. This objective was accomplished by developing and testing a computer‐based training and application tool to facilitate determination of the financial health of farm businesses using the DuPont profitability analysis model. The results of the two experiments indicate that the computer software was effective for teaching techniques of profitability analysis contained within the DuPont model.
Application of credit risk models to agricultural lending
Authors: Zech Lyubov , Pederson Glenn
Published: June 2010

A credit risk model suitable for agricultural lenders is identified. The model incorporates sector correlations and is applied to the loan portfolio of an agricultural credit association to create a distribution of loan losses. The distribution is used to derive the lender’s expected and unexpected losses. Results of the analysis indicate that the association is more than adequately capitalized based on 1997S2002 data. Since the capital position of the association is lower than that of most other associations in the Farm Credit System, this raises the issue of overcapitalization in the System.
Farm‐level and macroeconomic determinants of farm credit risk migration rates
Authors: Escalante Cesar L. , Barry Peter J. , Park Timothy A. , Demir Ebru
Published: June 2010

Logistic regression techniques for panel data are used to identify factors affecting farm credit transition probabilities. Results indicate that most farm‐specific factors do not have adequate explanatory influence on the probability of farm credit risk transition. Class upgrade probabilities are more significantly affected by changes in certain macroeconomic factors, such as economic growth signals (from changes in stock price indexes and farm real estate values) and larger money supply that relax the credit constraint. Increases in interest rates, on the other hand, negatively affect such probabilities.
Factors affecting farm enterprise diversification
Authors: Mishra Ashok K. , El‐Osta Hisham S. , Sandretto Carmen L.
Published: June 2010

Enterprise diversification is a self‐insuring strategy used by farmers to protect against risk. This study examines the impact of various farm, operator, and household characteristics on the level of onfarm enterprise diversification. Evidence exists that larger farms are more specialized. Also, farmers who participate in off‐farm work, farms located near urban areas, or farms with higher debt‐to‐asset ratios are less likely to be diversified. In contrast, evidence suggests there is a significant positive relationship between diversification and whether the farm business has crop insurance, is organized as a sole proprietorship, or receives any direct payments from current farm commodity programs.
Rural small business trade credit: a paradox
Authors: Gustafson Cole R.
Published: June 2010

This article examines trade credit practices of rural small business firms. The results show that these firms borrow money and then re‐lend it to others in the form of trade credit. There is a strong direct relationship between various forms of debt held by these firms and their level of accounts receivable (e.g., trade credit extended to customers). The actual level of re‐lending varied among firms depending on their adoption level of computer usage for cash management and credit services. Accounts receivable balances were also dependent on sales levels, costs of doing business, and other income.
The pricing of degree‐day weather options
Authors: Turvey Calum G.
Published: June 2010

This paper presents a model and framework for pricing degree‐day weather derivatives when the weather variable is a non‐traded asset. Using daily weather data from 1840S1996, it is shown that a degree‐day weather index exhibits stable volatility and satisfies the random walk hypothesis. The options prices from the recommended model are compared to a typical insurance‐type model. The results show that the insurance model overprices the option value at‐the‐money, and this may explain why the bid‐ask spread in the weather derivatives market is sometimes very large.
Risk management by farmers, agribusinesses, and lenders
Authors: Mishra Ashok K. , Lence Sergio H.
Published: June 2010

Producers and lenders seek to avoid agricultural production‐related risks through various managerial and institutional mechanisms. For individual farmers and agribusinesses, risk management involves choosing among alternatives for reducing the effects of risk on the firm, thereby affecting the firm’s welfare position. Risk management often requires the evaluation of tradeoffs between changes in risk, expected returns, entrepreneurial freedom, and other factors. Research on risk management issues in agriculture has been among the main topics of interest of the Regional Research Committee for Financing Agriculture in a Changing Environment: Macro, Market, Policy, and Management Issues, and its predecessors. This paper reviews and summarizes much of the Committee’s work and provides a discussion of related topics of interest for prospective future research.
Structure, performance, and risk management of financial institutions
Authors: Ellinger Paul N. , Hartarska Valentina , Wilson Christine
Published: June 2010

The performance, management, and risk exposure of financial institutions operating in rural and agricultural markets determine the cost of agriculture’s ongoing access to financial capital. The evolution of general banking and agricultural finance research contributions in the structure, performance, and risk management of financial institutions lending to agriculture and providing financing to rural markets is described and discussed in this paper. A summary of future research priorities in each of these areas is also provided. Ongoing regulatory change, institution consolidation, financial innovations, and the changes occurring in the agricultural sector drive research opportunities in this area. Ongoing research will be critical to maintain efficient rural financial markets that can provide consistent and competitively priced credit for rural America.
Credit risk assessment
Authors: Gustafson Cole R. , Pederson Glenn D. , Gloy Brent A.
Published: June 2010

Lenders, regulatory agencies, and investors have increased their demand for credit risk exposure information to appropriately price risk and evaluate risk migration patterns that affect institution safety and soundness. This review provides a synthesis of the advances in credit risk assessment made through journal articles and other professional reports. Contributions in three primary areas are considered: (a) how the credit risk assessment problem has been defined and redefined over time in response to the changing information needs of lenders and regulators, (b) how methodological innovations have improved credit assessment procedures, and (c) how the efficiency of financial markets has changed due to the evolution of credit risk assessment. The paper concludes with a discussion of how transactional and relationship lending approaches are expected to evolve in the future and whether measures can be developed to more accurately assess factors such as management capacity and commitment to repay.
Developments in portfolio management and risk programming techniques for agriculture
Authors: Turvey Calum G. , Escalante Cesar L. , Nganje William
Published: June 2010

This paper reviews various optimization approaches used to address a variety of issues related to risk in agricultural finance and farm management. The central focus is in the Markowitz mean‐variance model, which represents the classical approach to balancing risk and returns in an optimization framework. We also review other models that have been used historically to solve linearizations of the mean‐variance problem including MOTAD and target MOTAD. Specialized optimization models such as Target semivariance and direct expected utility maximization are also discussed.
Bankruptcy reform and the effects on chapter 12 bankruptcy for farmers (and fishermen)
Authors: Harl Neil E.
Published: June 2010

The United States Constitution assures debtors a right to relief from creditors seeking to satisfy claims against debtors unable to pay their debts. For well over a century, farmers as debtors have enjoyed a favored status by being exempt from involuntary bankruptcy. The landmark 2005 bankruptcy legislation continues that favored status even though the thrust of most of the rest of the 2005 law tightens the rules for non‐farm debtors in several significant respects. The 2005 bankruptcy amendments made Chapter 12 bankruptcy for family farmers a permanent part of the Bankruptcy Code, relaxed the rules on family farmers eligible to file for Chapter 12 bankruptcy relief, and created an innovative way to treat tax liability from liquidation of business assets. The contrast in Congressional treatment of farm debtors and non‐farm debtors in the 2005 statute is striking and appears to be attributable to strong and effective political support from farm state Members of Congress, the widespread belief that farmers in financial difficulty are deserving of assistance, and that abuse of the bankruptcy system has been less of a problem with the agricultural sector.
Loss‐given‐default on farm real estate loans: probability of full recovery
Authors: Yan Yan , Barry Peter J.
Published: June 2010

The non‐depreciability characteristic of farmland value implies that farm delinquencies and default may not necessarily lead to loan loss. Considering this, a model under the framework of Value‐at‐Risk is developed to estimate probabilities of debt coverage by farmland that is mortgaged to secure a loan. Loss‐given‐default (LGD) under collateral risk is conceptualized and empirical estimation of land values considering time pattern and uncertainty is proposed. Given different economic situations, the probabilities of full recovery of loan balances under both loan‐level and portfolio specifications are estimated using USDA data from selected states and regions. Results indicate that farmland pledged as collateral is expected to cover the loan balance with relatively high probability.
Business start‐up survival challenges and strategies of agribusiness and non‐agribusiness entrepreneurs
Authors: Escalante Cesar L. , Turvey Calum G.
Published: June 2010

The increasing demand for highly differentiated products in today’s enterprise economies has emphasized the small firms’ comparative advantage over larger firms. Business mortality rates, however, remained very high among more vulnerable start‐up businesses still in their earliest stage of business development. The challenges experienced by agribusiness entrepreneurs and their counterparts from other industries in their start‐up years are analyzed using case‐study research techniques. Results indicate that highly differentiated start‐up conditions between industries and among firms usually resulted in varied survival strategies. Notable differences include pricing policies dependent on market structures, more consultative management styles, inadequate start‐up resources, and preferences for brand new equipment.
Ledger provision in hog marketing contracts
Authors: Hennessy David A. , Lien Donald
Published: June 2010

Price‐dependent loan agreements at low interest rates have sometimes been included in North American hog sector long‐term marketing contracts. We show that a general form of this stipulation can be viewed as a hybrid between a forward rate agreement and a bundle of commodity spot options. In some cases, the provision amounts to a commodity swap. These observations provide an approach to valuing the provision. Historical data are used to estimate expected payouts to the producer under the contract feature.
Accounting for loan amount and credit rating when calculating lifetime value of agricultural lending relationships
Authors: Gunderson Michael A. , Gloy Brent A. , LaDue Eddy L.
Published: June 2010

Using empirical default probabilities and profitability distributions, a simulation model is developed to identify the long‐term value of relationships among differing credit rating and loan amount groups. According to the results generated from a set of lending relationships, agricultural lenders are pricing low and moderate credit rating customers such that similar long‐term values are found among the groups. Also, large loan amount relationships generate more dollars of lifetime value. The large relationships, however, earn fewer dollars of lifetime value per dollar of loan amount among risk peers. Implications are also drawn for the retention rates of existing customers.
A crop profitability analysis for long‐term crop investments
Authors: Seavert Clark , Hinman Herbert , Klonsky Karen
Published: June 2010

The Crop Profitability Analysis (CPA) computer program is designed to help agricultural producers make long‐run cropping decisions. CPA uses previously generated enterprise budgets to establish a base from which producers can analyze the potential profitability of perennial crops with establishment periods, such as orchard, berry, and vineyard crops, or the feasibility of long‐term crop rotations. CPA permits up to a 20‐year planning horizon and uses the economic concepts of net present value, annual equivalence, and internal rate of return to analyze the potential profitability of a given enterprise. CPA also analyzes the financial feasibility of potential investments by generating annual net cash flows.
Making loans to make friends: explaining the dismal financial performance of financial service associations
Authors: Mude Andrew G.
Published: June 2010

This paper investigates the ways in which microfinance provision can unravel and yield perverse outcomes that run counter to its stated objective. It presents a theoretical challenge to the Stiglitzian notion that large endowments of social capital induce inexpensive peer‐monitoring efforts which render jointly‐liable contracts efficient. Reliance on a specific set of assumed community characteristics that often do not adequately represent the incentive structure facing borrowers and lenders grossly overestimates the efficiency of informal finance institutions. In particular, by focusing on Financial Service Associations, a specific form of microfinance institution, the effectiveness of such institutions is found to be very sensitive to the behavioral motivations of both clientele and provider, as well as the social norms upon which such transactions take place.
Estimating delinquency migration and the probability of default from aggregate data
Authors: Stokes Jeffrey R. , Gloy Brent A.
Published: June 2010

Defaulting on a mortgage represents the ultimate consequence of past decisions to delay payment. While many modeling approaches are available to estimate the probability of default, most if not all require account‐level data. Further, past research has not attempted to estimate the probability that a current loan will transition among delinquency states prior to default. In this paper, we present an econometric approach that makes use of publicly available aggregate data for estimating the probability of delinquency and the probability of default. The results suggest the approach may have merit for monitoring bank performance as well as usefulness for banks’ risk management efforts.
An analysis of credit risk migration patterns of agricultural loans
Authors: Behrens Andrew , Pederson Glenn D.
Published: June 2010

Loan migration analysis is conducted using a large data set of loan risk ratings in the Farm Credit System. We find path dependence and limited support for a trend reversal pattern. There is evidence that the magnitude of migrations reported in previous credit score proxy studies overstates trend reversal in agricultural loans rated by lenders. Our results indicate that retention rates of agricultural loan risk ratings are quite high. Small loans are less likely to migrate than medium and large‐sized loans, and unseasoned loans are more likely to migrate than seasoned farm loans
Markov chain models for farm credit risk migration analysis
Authors: Deng Xiaohui , Escalante Cesar L. , Barry Peter J. , Yu Yingzhuo
Published: June 2010

This study introduces two Markov chain time approaches, time‐homogeneous and nonhomogeneous models, for analyzing farm credit risk migration as alternatives to the traditional discrete‐time (cohort) method. The Markov chain models are found to produce more accurate, reliable transition probability rates using the 3 x 1 migration measurement method used by farm lenders. Compared to corporate bond ratings migration results, this study obtained larger mean differences in singular value decomposition between the cohort matrix and each of the Markov chain matrices. This finding suggests that the omission of transient, indirect migration activities under the cohort method is more costly when applied to farm credit analysis. This discrepancy could lead to understated transition probability estimates which, in turn, could produce misleading indicators of farm loan portfolio quality.
Changes in the distribution of farm wealth in the United States
Authors: Mishra Ashok K. , Moss Charles B. , Erickson Kenneth W.
Published: June 2010

This paper examines the changes in farm sector wealth from 1949 through 2002. The study uses Theil’s entropy‐based measure of inequality of farm wealth for 10 regions of the United States. The entropy measure is then used to decompose U.S. inequality into within‐region and between‐region differences. Results show that for the period 1949 to 1993, relative to the number of farms per state, farm wealth in the United States became more equally distributed. However, beginning in 1994, findings suggest inequality in wealth may be increasing.
Analysis of rainfall derivatives using daily precipitation models: opportunities and pitfalls
Authors: Odening Martin , Musshoff Oliver , Xu Wei
Published: June 2010

This study examines rainfall variability and its implications for wheat production risk in northeast Germany. The hedging effectiveness of rainfall options and the role of geographical basis risk are analyzed using a daily precipitation model. Simpler pricing methods such as the burn analysis and the index value simulation serve as benchmarks for comparison. It is found that the choice of statistical approach may lead to considerable differences in the estimation results. Daily precipitation models should be used with some caution in the context of derivative pricing because they tend to underestimate rainfall variability. This is unexpected, because daily simulation models are usually preferred in the context of temperature‐based weather indexes.
Factors influencing borrowers’ preferences for lenders
Authors: Farley Travis A. , Ellinger Paul N.
Published: June 2010

Data from a survey of Midwest producers are used to examine the credit source decisions of farm borrowers. The lender attributes preferred by producers are identified in terms of their importance in selecting credit providers. The influence of farm business information on farmers= interest rate sensitivity and loyalty is investigated. Regression results indicate that patrons of the Farm Credit System are more likely to be highly price sensitive. Furthermore, the likelihood for strong borrower loyalty is found to be higher for smaller, less leveraged, and more tenured farms and by those who source financing from bank institutions.
Combining hedonic and negative exponential techniques to estimate the market value of land
Authors: Tsoodle Leah J. , Featherstone Allen M. , Golden Bill B.
Published: June 2010

Given the importance of land valuation to various stakeholders, the objective of this research is to estimate a theoretically sound model to model the market value of land in Kansas, accounting for urban influence and site specific characteristics. The model is estimated using data on all sales of agricultural land in Kansas between 1996 and 2004. Results indicate that the upward, urban pressure on price is greater for Kansas City relative to Wichita. Kansas City had a much slower rate of decay than either Wichita or cities with a population of more than 10,000.
Structural breaks and agricultural asset allocation
Authors: Pendell Dustin L. , Featherstone Allen M.
Published: June 2010

Structural breaks have been found to have large effects on optimal investment allocations. This analysis empirically tests for a structural break and then evaluates the impact the break has on the optimal allocation of agricultural and nonagricultural investments using a mean‐variance model. Results indicate nonfarm investors could enhance their portfolios by investing in farm assets. However, the results suggest that the allocation of assets prior to the structural break in the early 1950s is much greater than the time period following the break and the entire 1926‐2004 time period. Typically, portfolio research has not tested for structural breaks and this may adversely affect decisions on investment allocation.
Capital structure, firm size, and efficiency: the case of farm petroleum and animal feed co‐operatives in Canada
Authors: Hailu Getu , Jeffrey Scott R. , Goddard Ellen W.
Published: June 2010

This paper examines the cost structure and cost efficiency for an unbalanced sample of 42 animal feed and 115 farm petroleum co‐operatives in Canada over the period 1984‐2001 using heterogeneous technology stochastic frontier models. The parameter estimates of the cost frontier and the resulting cost efficiency scores indicate there are statistically and economically significant cost inefficiencies. Further analysis revealed that financial structure and firm size have likely contributed to variations in cost efficiency. Obtaining sufficient equity capital is expected to improve co‐operative efficiency