Improved Skills Called Vital in Agricultural Credit Field

By Kahn, Ephraim | American Banker, April 16, 1984 | Go to article overview

Improved Skills Called Vital in Agricultural Credit Field


Kahn, Ephraim, American Banker


WASHINGTON -- Agricultural lenders and borrowers must become more sophisticated to compete effectively and meet expanding needs for agricultural credit in coming years.

So says Donald E. Wilkinson, governor of the Farm Credit Administration. He beleives big changes are called for in interbank relationships if agricultural banks are to hold their own as competition for sound borrowers intensifies.

Under Mr. Wilkinson's guiding hand, the Farm Credit Administration supervises the Farm Credit System -- a farmer-owned organization that makes loans to farmers, ranchers, and commercial fishermen -- and their cooperatives -- as well as rural residents and farm-oriented businesses.

Sophisticated financial servicing, including electronic communication, will be needed by farmers and ranchers as agriculture comes out at the recession, Mr. Wilkinson suggested in a recent interview.

if lenders "intend to woo and serve agricultural constituents, they'll have to have the credit packaging avaiable: short-term, variable, fixed, and whatever it takes to provide customized credit service."

Mr. Wilkinson stressed that agricultural lenders "are going to have to have skilled technicians, skilled loan officers" who can talk to farmers in their own language and be able to deal with agricultural borrowers.

Smaller banks will have to sharpen their lending skills, the former Wisconsin state agriculture department expert indicated. Hometown banks still will service agricultural customers, but these institutions may not be in a position to serve the larger commercial farm operations. Smaller banks face limits on both credit lines and n-house lending expertise, he said.

One solution he anticipates is broader cooperation among banks in pooling funds for larger loans and sharing agricultural expertise, which can be called upon in handling even smaller agricultural loans.

Mr. Wilkinson has headed the independent Farm Credit Administration since early 1977, after he completed a year and a half as head of the federal government's agricultural marketing service.

Farm Credit Administration-supervised loans and made through a complex system. Long-term Federal Credit System loans are extended through Federal Land Banks, which in turn provide funds to Federal Land Bank Associations. Federal Intermediate Credit Banks provide money for short-and intermediate-term lending to Production Credit Associations. Also, the Federal Credit System includes the Banks for Cooperatives, which finance agricultural co-ops.

Mr. Wilkinson said that if correspondent banking relationships could be used for pooling small and big bank resources, "that would be fine." But in many cases, he said, he is "fearful that in recent years the correspondent bank has found it to be advantageous to dedicate more of its funds and attention to more productive investment enterprises [than agriculture]."

Rural and agricultural communities especially are susceptible to a scarcity of funding, he observed. …

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

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
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

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

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Improved Skills Called Vital in Agricultural Credit Field
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?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
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.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, 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." (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

    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.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.