Freeze Puts Squeeze on Citrus Growers; Florida Farm Loan Woes Echo Midwest: Farm Credit Service Expects Defaults; Commercial Banks at Lesser Risk

American Banker, February 20, 1985 | Go to article overview

Freeze Puts Squeeze on Citrus Growers; Florida Farm Loan Woes Echo Midwest: Farm Credit Service Expects Defaults; Commercial Banks at Lesser Risk


TAMPA, Fla. -- Far away from the troubled grain farmers in the Midwest, Florida citrus growers are facing the same threats of foreclosures and liquidations.

Ravaged by an almost unprecedented fourth freeze in the last five years, many growers in the state will be unable to make loan payments this year and will be forced out of business, industry officials believe. And while banks in the area do not expect to be hit as hard as their counterparts in the Midwest, lending institutions will not be immune to the fallout from the freeze.

While its icy blue glaze has long since melted away, the freeze that blanketed Florida in January continues to haunt the state farm and citrus industry. The growers and farmers watched helplessly as the January cold front swept across their lands, severely damaging crops and killing trees.

While an official said a freeze as intense as the one in January generally occurs "once in 100 years," Florida has suffered through two since Christmas 1983, and four in the last five years.

"The last two freezes have been devastating to the citrus industry," said James Beck, president of the Central Florida Farm Credit Service.

Not only did the citrus growers lose their 1985 crops, but they also may have lost their trees and much of the value of their investment. With the tree loss, they have nothing with which to secure new financing. A canker disease has wiped out many of the tree seedling as well, making replanting impossible for some.

Mr. Beck and other industry lenders expect a higher default rate on their loans, as well as more foreclosures. He said some farmers will put their property up for sale and move on.

While industry cooperative are the prime lenders for the growers, commercial banks also may feel the eventual pinch of the freezes as well.

Southeast Banking Corp. and NCNB seedling as well, making replanting impossible for some.

Mr. Beck and other industry lenders expect a higher default rate on their loans, as well as more foreclosures. He said some farmers will put their property up for sale and move on.

While industry cooperative are the prime lenders for the growers, commercial banks also may feel the eventual pinch of the freezes as well.

Southeast Banking Corp. and NCNB Corp. have made a number of citrus and farm loans. Officials of both companies said they do not expect a sharp increase in defaults.

"So far we have not see any defaults," NCNB spokesman Jim Chandler said. He said the company had "limited exposure" to the citrus industry and was "working with customers who have payment problems."

Other Florida bankers echo the contention that their loan portfolios will not be affected severely by the problems in citrus industry. Few banks make long-term, fixed-rate loans on groves. Instead, they generally make smaller, short-term loans designed to tide the growers over when they are cash-short.

"The majority of our loans are short-term," said William Klich, a senior vice president of Southeast Bank in Tampa, which has lent about $25 million to growers and citrus processors. "They are mostly seasonal things like providing growers with the money to hire pickers at the time the crop has to be harvested, so we haven't been hurt directly."

But bankers say their companies will be affected in an indirect way. David Class, executive vice president of the Bank of Pasco County, said his bank does not have many loans to citrus growers. But many of its customers rely on the industry nonetheless.

"A lot of our customers are employees in the grove," Mr. Class said. "They will probably have some trouble making their pauments on car loans and things like that because of the problems in the industry."

Mr. Class said merchants in the area will also be hurt because many rely on citrus workers for their business. That too will affect the bank. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Freeze Puts Squeeze on Citrus Growers; Florida Farm Loan Woes Echo Midwest: Farm Credit Service Expects Defaults; Commercial Banks at Lesser Risk
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.