Analysis of the Agricultural Nonreal Estate Credit Structure in Selected Counties in South Dakota

This study is concerned with the non-real estate credit lending practices, policies and attitudes. It is important that farmers understand the lender’s business philosophy to make better use of credit sources available to them. The difference between success and failure of a farm business can often be attributed to the quality of services provided by financial sources. Furthermore, lenders and government policymakers must become increasingly aware of the problems and issues that are presently affecting and are likely to affect their role in agricultural industry so each can best adapt to the changing credit needs of the farmers. Objectives: 1. To describe the agricultural credit structure in South Dakota with the emphasis upon the region of the state surveyed. 2. To describe the influence of changing economic factors during 1976 and 1977 on the institutional nonreal estate agricultural credit structure in selected agricultural region within the state of South Dakota. 3. To determine the institutional agricultural lender’s policies and attitudes regarding nonreal estate farm loans in a selected agricultural region within the state of South Dakota during 1977. 4. To present an evaluation of the farm credit market from the viewpoint of a selected group of knowledgeable members of the community that are acquainted with agricultural credit. A brief description of South Dakota’s climate. Farm enterprises and farm income sources is presented. The farm credit structure in South Dakota is described. The agricultural nonreal estate credit activity in five eastern South Dakota counties is examined in detail. The agriculture nonreal estate credit activity in five eastern South Dakota counties is examined in detail. The information for this study was obtained from interviews with participating lenders and members of the agricultural community whose main business is other than the provision of agricultural credit