Farmers avoid loans

While credit is still available, many farmers are reluctant to take out loans.

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The total volume of loans has grown by only 1 percent so far this year, compared to 13 percent in 2008.

Banks within the overall system have seen their loan volumes nearly stagnate, according to the most recent financial statement from the Federal Farm Credit Banks Funding Corp., an institution which funds the system…

Farmers are hunkering down and avoiding capital investments, said Jay Penick, CEO of Northwest Farm Credit Services. “We’re coming into a period where everybody is waiting to see if the general economy backs into agriculture or starts to improve.”

Read the full story at the Capital Press.

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