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The 1995 farm bill: Crystal-balling future farm policy

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  • Allen, Randy

Abstract

While agricultural bankers have enjoyed the effects of 5 years of record gross farm income, potential problems exist for the near future. Agricultural profit margins are narrowing, and only smart banking and sound farm management will ensure future profitability. Indicators of possible future problems include expected reductions in government farm subsidy levels, expected elimination of the rollover tax exemption on grain and livestock inventories, shrinkage of export markets, and continued aging of the farm population. Agricultural lending aiming to remain competitive should: 1. standardize farm financial records and recognize the growing importance of credit analysis, 2. establish a plan to attract new farm clients and adopt a market-share orientation, and 3. continually educate farm clientele.

Suggested Citation

  • Allen, Randy, 1993. "The 1995 farm bill: Crystal-balling future farm policy," American Bankers Association, American Bankers Association > Journal of Agricultural Lending, vol. 7(01).
    • Handle: RePEc:ags:abajal:336273
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    File URL: https://ageconsearch.umn.edu/record/336273/files/ers2022-23-0226.pdf
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