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Abstract

Projections for financing agriculture in the year 2000 require analysis of the major determinants of demand for capital by farm firms: 1) economic environment; 2) farm structure; 3) land values; and 4) credit demand. Economic trends suggest financial strength and stability for the agricultural sector in 2000, and farm expansion over the 1990s will be moderate overall. Real land values are expected to change little, and agriculture's investment capital needs will grow modestly as a function of modernization, equipment replacement, and changes in ownership. Equity sources will be the primary financing vehicle.

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