Distance to commercial banks and farm household asset accumulation

This article examines the relationship between banking access and farm household investment. The assets we examine are non-retirement financial assets, retirement financial assets, and real estate assets not owned by the farm operation. Using data from the Agricultural Resource Management Survey and the universe of commercial bank branches from the Federal Deposit Insurance Corporation, we find that distance to commercial banks is negatively related to the degree of investment in each of these assets for farm households. We also find that internet availability, as measured by the share of farms in the county with internet, is positively associated with farm households’ investment in each of these assets. Further our results show that farm households that are located in the South have the lowest bank access as measured by bank proximity and internet availability.