Farm Credit System faces losses and calls for aid
Wilkinson warned Congress and the administration that the farm credit system carries 76 billion in loans, faces double digit rates and a shrinking collateral base, with 11.7 billion of loans currently in trouble. He warned the sector could ripple through banking and urged federal loans similar to Chrysler and Continental Bank support. Howard Richards noted farmers struggling to stay in business due to timing and cash flow issues.
MENTIONED IN THIS ARTICLE
Donald Wilkinson
Farm Credit Administration
Congress
Farm Credit
Wilkinson
Farm Credit System
Production Credit Association
Federal Land Bank
Chrysler Corp
Continental Bank
Howard Richards
Farm Credit System faces deeper peril without bailout
A GAO study warns the Farm Credit System could deteriorate further with loan losses tripling to about 6.1 billion dollars and earnings dropping to at least 2.6 billion for the year ending June 30, 1986. Regulators dispute the figures, while bond funding costs rise and better borrowers seek alternatives.
MENTIONED IN THIS ARTICLE
GAO
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