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Abstract
This research explores the factors influencing loan repayment and financial outcomes for socially disadvantaged farmers participating in the United States Department of Agriculture’s Farm Service
Agency (FSA) program. Through multiple regression analysis, the research explores the impact of
financial metrics, loan conditions, and demographic elements on repayment ability among White, Black,
and Hispanic farmers. Findings indicate that Black farmers demonstrate greater repayment ability, as
shown by their elevated term debt coverage ratios (TDCR), even though they possess lower total asset
values and encounter greater debt-to-asset ratios relative to White farmers. Hispanic farmers demonstrate
comparable financial strengths, yet they face greater pressure because of increased debt loads. The
research finds that structural obstacles, like reduced loan amounts, shorter loan terms, and elevated interest
rates, still affect minority farmers' capacity to repay loans. The results emphasize the necessity for better
financial assistance, modified lending conditions, and specific policies to boost the financial sustainability
and repayment results for socially disadvantaged farmers. INDEX WORDS: United States Department of Agriculture (USDA), Farm Service Agency (FSA), Loan repayment, Financial performance, Socially disadvantaged farmers, Agricultural finance.