Potential Loan Losses of Farmers and Lenders

Gregory Hanson

No 309408, Agricultural Information Bulletins from United States Department of Agriculture, Economic Research Service

Abstract: Agricultural lenders could potentially lose $6--$8 billion on farm operator loans in 1987-88. By 1989, $20 billion, or 10 percent of all farm loans outstanding m the early 1980's, will likely have been written off by lenders. By the end of 1987, 70-80 percent of all lender loan losses will probably have been taken. This means 75 percent of the farm debt crisis will have been worked through by the end of 1987. Land and commodity prices are projected to generally stabilize. If they do not lenders face a new round of loan losses in 1989-90, as currently solvent and/or recovering farmers find their balance sheets and earnings statements eroding under new financial pressures.

Keywords: Agricultural Finance; Financial Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 12
Date: 1987-09
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/309408/files/aib530.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uersab:309408

DOI: 10.22004/ag.econ.309408

Access Statistics for this paper

More papers in Agricultural Information Bulletins from United States Department of Agriculture, Economic Research Service Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().