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Abstract

Agricultural lenders have new delivery systems available today, including joint ventures with input suppliers, receivable purchases from local suppliers, "dealer financing" of input suppliers, regional loan production offices, and a mobile loan officer with a car and a computer. The ag loan portfolio should be separated into signature loans, collateral loans, and performance loans, with each kind of loan managed differently. Other concerns in agricredit are the environmental and waste disposal, with banks needing to evaluate potential problems and to manage loans so that they will not be held liable for cleanup costs.

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