Risk Profile of Lenders' Farm Loan Portfolios

摘要

Farm lenders will face difficult credit problems into at least the intermediate future. As much as 25 to 40 percent of the outstanding debt held by banks and production credit associations was owed by farmers with debt/asset ratios of 60 percent or more on January 1, 1980, when farmland values were near peak levels. Although the Farmers Home Administration held the highest percent of farm loans owed by high leverage farmers, production credit associations, merchants, and commercial banks had a relatively large percentage of their farm loans directed at high leverage farmers.