By US Department of Agriculture
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Extra info for Agriculture Fact Book 1999 (Agriculture Factbook, 1999)
Loans made to agricultural producers are classified as real estate and non-realestate loans in the farm sector accounts. Real estate loans generally have terms of 10 to 40 years and are ordinarily used to purchase farmland or to make major capital improvements to farm property. Non-real-estate loans are typically made for loan terms of less than 10 years, with the term depending on the purpose of the loan. Seasonal operating loans are made for less than 1 year, while loans to purchase machinery and equipment or livestock may run for 7 years or more.
The remaining 20 percent, or $119 billion, represents the gross return paid to farmers. The cost of marketing farm foods has increased considerably over the years, mainly because of rising costs of labor, transportation, food packaging materials, and other inputs used in marketing, and also because of the growing volume of food and the increase in services provided with the food. In 1988, the cost of marketing farm foods amounted to $302 billion. In the decade after that, the cost of marketing rose about 54 percent.
Source: USDA, Economic Research Service, Resource Economics Division. Figure 3-2. Farm business debt by lender Billion dollars 80 Farm Credit System 70 Banks 60 50 40 30 Farm Service Agency1 Individuals & others 20 Life insurance companies CCC Storage & Drying Facilities 10 0 1965 67 1 69 71 73 75 77 79 81 83 85 87 Includes the former Farmers Home Administration’s loans. Individuals and others include Commodity Credit Corporation real estate loans. Source: USDA, Economic Research Service, Resource Economics Division.
Agriculture Fact Book 1999 (Agriculture Factbook, 1999) by US Department of Agriculture