The Farm Credit Crisis Policy Options and Consequences

Abstract

The enclosed articles represent a response by the Extension Service, the Economic Research Service and the Land Grant University System to the need for a comprehensive documentation of the broad spectrum of policy options available to deal with the farm credit crisis. Emphasis is placed upon a description of options and their consequences. The topics covered in the articles were specifically designed to look at policy options from a broader perspective than the tools available to deal with the current crisis. It attempts to analyze some of the factors that have significantly aggravated the current crisis (the overvalued dollar, high real interest rates, or excessive agricultural resources) from the perspective of the policies designed to deal with them (macroeconomic policy, domestic farm policy, tax policy, and rural resource development policy). Financial support for this project was provided by the Extension Service, USDA and the Farm Foundation. The Texas Agricultural Extension Service provided staff support for review, editing and production of the articles. The steering committee appointed by the National Public Policy Education Committee for the project included: Ronald D. Knutson, Chairman, Texas A&M University

Marvin Duncan, Farm Credit Administration

David Harrington, ERS, USDA

John Penson, Texas A&M University

Dave Lins, University of Illinois

John Watt, University of Montana

Walt Armbruster and Jim Hildreth, Farm Foundation

Harold D. Guither, University of Illinois

John Brake, Cornell University

and Robert W. Jolly, Iowa State University.