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Essays On Earth & Physical Sciences
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Agriculture and its Impact on Financial Institutions
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15 pages. Because of the uncertainty in the agricultural markets there is a definite impact on the lending institutions that service them. There are so many variables in the farming industry that there is no guarantee from year to year that agribusinesses will be able to keep up with loan payments if they have one or more years of losses in a row. There is currently widespread controversy among the agribusinesses and lending institutions on Capitol Hill as to how best to cope with the problem. One such solution would be to privatize lenders dealing with farm loans, and other solutions run the gamut from asking farm lenders to diversify their businesses to suggesting more emergency funding from the government. It is the purpose of this paper to prove that while farm lending can be a risky business it would serve no good purpose and would be unfair to other businesses for government emergency funding to be increased; lending institutions will need to work out ways to deal with the agribusiness risk. Bibliography lists 36 sources.
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