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Article: Farm Lending About to Heat Up.
- Article from:
- Kiplinger Business Forecasts
- Article date:
- February 27, 2001
CopyrightCOPYRIGHT 2001 The Kiplinger Washington Editors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline:Vandana Mathur
Look for competition among bankers to intensify under new regulations that let farm credit banks vie with independent banks on loans to the biggest and most profitable farmers anywhere in the country.
Currently, banks operating under the Farm Credit Administration (FCA) are restricted to making loans to farmers within a limited geographic territory. New regulations that the FCA plans to issue will lift that restriction. That will result in lower-cost loans for farmers and tighter profit margins for banks, which in turn will hasten the pace of bank consolidation. Small, higher-risk farm operators will find it harder to get loans, ...