Deteriorating Farm Finances Affect Rural Banks and Communities

Daniel L. Milkove, Patrick J. Sullivan and James J. Mikesell

Rural America/ Rural Development Perspectives, 1986, vol. 02, issue 3

Abstract: Financial problems in the agricultural sector are eventually transmitted to farm lenders. As cash flow problems cause farmers and farm-related businesses to fall behind on loan payments, the quality of lenders' loan portfolios deteriorates. Lenders must set aside reserves to cover actual and anticipated loan losses. These and other adjustments by agricultural lenders to cope with their problem loans can affect credit availability for the community at large.

Keywords: Agricultural Finance; Community/Rural/Urban Development; Risk and Uncertainty (search for similar items in EconPapers)
Date: 1986
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersra:310368

DOI: 10.22004/ag.econ.310368

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