The FCS and the USDA: The Informational Efficiency of the Federal Farm System Bond Market

Authors

T. Lance Toler, Brigham Young University
Dr. Farrell E. Jensen, Brigham Young University

Keywords

FCS, Federal Farm, Credit System, USDA, informational efficiency, Bank bonds

College

Family, Home, and Social Sciences

Department

Economics

Abstract

The United States Department of Agriculture (USDA) prepares reports on the income and financial stability of American farmers and agricultural organizations. If the information in USDA reports on the financial stability of American agriculture is already known by the markets, then the prices of Federal Farm Credit System (FCS) Bank bonds, which are related to the credit risk associated with American agriculture, will not be affected by the release of the reports. If the information provided in the reports is new to the market, however, significant changes in FCS bond prices should immediately be seen as the new information is absorbed into market prices.

Recommended Citation

Toler, T. Lance and Jensen, Dr. Farrell E. (2013) "The FCS and the USDA: The Informational Efficiency of the Federal Farm System Bond Market," Journal of Undergraduate Research: Vol. 2013: Iss. 1, Article 172.
Available at: https://scholarsarchive.byu.edu/jur/vol2013/iss1/172