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Newspaper
Cedar Rapids Gazette
Location
Cedar Rapids, Iowa, United States of America
Date
Nov 01, 1981
Page
8
Farmers steer through a tight credit year with high rates. Economists say modern equipment and preventive maintenance reduce the need for new purchases. They advise careful capital spending, hedging, and using government safety nets to weather price swings.
Farmers switch from short to long term lending as inflation raises costs. Banks report strong one year operating loans but declines in machinery loans as farmers refocus debt, with long term rates lower overall. Lenders note high rates top to bottom and warn the drought in farm equipment sales may end when commodity prices rise.
President Reagan identifies as a farmer while Agriculture Secretary John Block cautions Kansas farmers that high price supports would damage their image. He notes half a billion dollars in subsidies this year and says higher subsidies would worsen that stigma.
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