ABSTRACT
American farmers of the mid-1980s are struggling with an enormous financial crisis. Lenders and businessmen who primarily serve the farm community face similar distress. Financial stress among farmers also directly concerns agricultural lenders. As of January 1985, ag lenders faced losses on approximately 12 percent of their loans. The farm sector is readjusting to the disruptive effects of the boom period of the 1970s. Actually, agriculture is currently more profitable than it was during the 1950s and 1960s. Policy makers, financial people, farmers--everyone, in fact, with a share of concern in the matter of farm finance-tend to see the farm financial problem in terms of income problems. People, affiliated with agriculture or not, often focus on the highly technical aspects of farming--crop production, machinery selection, operation, and maintenance. The chapter also presents an overview of the key concepts discussed in this book.
