Abstract
We surveyed agricultural loan officers and their supervisors in North Dakota to learn what factors influenced the decision to make loans to farmers investing in new agricultural cooperatives. We found that the Farm Credit Services and other large institutions made a disproportionately large share of the loans. Furthermore, institutions with minimal equity, but with low levels of non-current loans and a high return on equity, were more likely than others to make the loans. Experienced agricultural loan officers and those who attended a cooperative's information meeting or reviewed the business plan were more likely to make loans. Loan officers granted loans to applicants who met conservative lending criteria. The decision was not based on the loan officer's attitudes toward cooperatives. Attitudes of loan officers toward cooperatives were generally positive. Most negative attitudes were expressed about the price of the stock, and the delivery contracts required by the cooperatives. Finally, loan officers believed cooperative stock was a risky investment, inferior to stock and mutual funds as stand alone investments.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
