ABSTRACT
This chapter discusses emerging strategies of traditional agricultural lenders. The major emphasis will be on factors needed to develop a strategic emphasis for traditional agricultural lenders. A significant part of the current agricultural lending industry can be characterized by relationship lending. Relationship lending implies a higher level of service than the alternative type of lending which is often called transaction lending. Traditional lenders will need to adapt strategies that will allow them to continue to function, merge with other institutions, or cease business operations. Several generic strategies that may guide future business decisions are available to banks and other traditional lenders. Numerous strategies exist to position a financial institution for the future, each of which prescribes an objective. In order to choose an appropriate strategy upon which a competitive advantage can be built, it is important to examine the competitive environment. The chapter concludes with a discussion of specific strategies that traditional agricultural lenders might adopt.
