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Part three of three: the future of agricultural lending

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  • Harl, Neil E

Abstract

Legislation has restricted capital flow into agriculture and the use of farms as tax shelters to limit large scale and absentee farming. Even if these restrictions are removed, family farms are expected to dominate agriculture for the next decade. In the future, farm real estate loans may be divided into low risk loans in the secondary market and higher risk ones ineligible for the secondary market. Other future trends may include: 1) the availability of equity capital; 2) an increase in leasing; 3) a decline in the impact of recent legislation on capital availability; and 4) an increase in international competition. Finally, taxpayers must be willing to support the government and politicians must cut back federal spending.

Suggested Citation

  • Harl, Neil E, 1991. "Part three of three: the future of agricultural lending," American Bankers Association, American Bankers Association > Journal of Agricultural Lending, vol. 5(01).
    • Handle: RePEc:ags:abajal:336204
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    File URL: https://ageconsearch.umn.edu/record/336204/files/ers2022-23-0157.pdf
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