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Policy Considerations Related to Further Intervention in the Farm Credit System

Author

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  • Harl, Neil E.

Abstract

The Farm Credit System Is a major participant in extending credit to and brokering losses from the agricultural sector during the current adjustment process. This article focuses on the problems faced by the system as a cooperative lender with relatively little diversity in its loan portfolio. Assistance to the system should be accompanied by organizational and structural changes that address the fundamental reasons for its vulnerability. Conditions suggest three basic choices: (1) preservation of the system in recognizable form, (2) decentralization to the district level, or (3) a shift toward a wholesaling function. One realistic alternative would involve a combination of these approaches.

Suggested Citation

  • Harl, Neil E., 1987. "Policy Considerations Related to Further Intervention in the Farm Credit System," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 2, pages 1-17.
    • Handle: RePEc:ags:joagco:46203
    DOI: 10.22004/ag.econ.46203
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    File URL: https://ageconsearch.umn.edu/record/46203/files/Volume%202%20Article%205.pdf
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    Cited by:

    1. Dodson, Charles B. & Bullock, J. Bruce, 1991. "An Analysis of the Economic Viability of Farm Credit System Banks and Combined Associations," Miscellaneous Reports 257767, University of Missouri Columbia, Department of Agricultural Economics.

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    Keywords

    Agricultural Finance;

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