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Federally insured depository institutions, government-sponsored enterprises, public financial assistance programs, private firms, and individuals provide financial capital in the form of credit or equity investments. ERS assesses the financial condition of the major sources of financial capital for farmers and other rural residents and the trends and policy developments affecting their performance.


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Agricultural Lenders and Credit Availability
Uncertainty over how long low commodity prices will persist is depressing demand for farm credit, but widespread negative effects on farm loan portfolios have not yet materialized. Financial institutions serving agriculture continued to experience improved conditions in 1999, and some additional gains are possible in 2000. The sound position of agricultural lenders reflects the generally healthy state of farmers' finances in the mid-1990's, a strong nonfarm economy, and high levels of government farm assistance in 1998 and 1999.

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updated: May 21, 2001

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