Publications > Cahiers (English)> N° 5, september 1987

Agriculteurs en difficulté
[Farmer' Difficulties]

• [Indebtedness and financial stress in Danish agriculture], A. Walter-Jørgensen
• [Financial difficulties in French agriculture], D. Aubert and Y. Léon
• [Recent financial difficulties in Irish agriculture], A. Matthews
• [Financial problems in U.S. agriculture], M. Drabenstott
• [Farm financial stress in Minnesota], I.R.M. Bain and J.A. Paulson
• [Agricultural financial stress in Canada], G. Debailleul and P. Erhensaft
• [A comparative note on US and Canadian farm sectors], G. Debailleul

L'endettement et les difficultés dans l'agriculture danoise
[Indebtedness and financial stress in Danish agriculture]

A. Walter-Jørgensen

In : Cahiers d'Economie et Sociologie Rurales, n° 5, september 1987, pp 11-21

Abstract : Danish agriculture faced serious economic problems in the late seventies through 1980-81. Farmer's income fell drastically whilst they carried a heavy debt burden as a consequence of major investments during the recent past. These borrowings were incurred at high fixed interests rates when inflation was growing fast and therefore were not sustainable. One quarter of all farms experienced serious financial problems and 10 % went into bankruptcy. As this stress was partly due to the type of loans provided to farmers, the advantages of loans with variable rates of interest are discussed.

Key-words : Denmark, bankruptcy, financial stress, farmers, fiscal policy, farm indebtedness, loans, inflation, rate of interest.

Problèmes financiers des agriculteurs français et mutations du secteur : le cas des agriculteurs en difficulté
[Financial difficulties in French agriculture]

D. Aubert and Y. Léon

In : Cahiers d'Economie et Sociologie Rurales, n° 5, september 1987, pp 23-45

Abstract : Many French farmers have faced financial difficulties during the past decade. Some are experimenting serious financial stress and are in danger of bankruptcy. In this paper we emphasize the latter case. First, we attempt to define serious financial stress. Liquidity and solvency ratios as well as measures of cash-flow ar used to assess the extent of financial stress among farmers (5 to 10 % are implicated). Finally, the origins of current problems at the farm level are discussed comprehensively. A lack of economic efficiency or a very high leverage are generally at the root of these difficulties. They also occur because of poor evaluations of the future prospects of the farm on the part of farmers or lenders, suppliers and public agencies.

Key-words : France, evolution of agriculture, farm indebtedness, farmers, financial stress.

Les difficultés financières récentes dans l'agriculture irlandaise
[Recent financial difficulties in Irish agriculture]

A. Matthews

In : Cahiers d'Economie et Sociologie Rurales, n° 5, september 1987, pp 47-64

Abstract : An important fraction of Irish farms have experienced very severe financial problems in recent years. The origins and magnitude of this crisis are discussed. In 1981, almost 10 000 farmers were estimated to be unable to meet their loan repayments (out of 120 000 farms with a business size greater than 2 European size units). The solutions which were implemented are then set out. They consisted of : 1) direct interest rate subsidy programs ; 2) programs to encourage borrowing in low interest eurocurrencies by providing a State guarantee against exchange rate losses on these loans. The possible impacts on farm structure, prospects for future output growth and attitude to farm credit are also assessed.

Key-words : Ireland, farm indebtedness, farmers loans, credit policy, agriculture policy, financial stress.

Problèmes financiers dans l'agriculture des Etats-Unis
[Financial problems in U.S. agriculture]

M. Drabenstott

In : Cahiers d'Economie et Sociologie Rurales, n° 5, september 1987, pp 65-73

Abstract : U.S. agriculture is undergoing a period of great financial stress with deterioration in the credit quality of many farms. One-fifth of commercial farms were estimated to be under serious financial stress (both negative cash-flow and debt-asset ratios of more than 40 %) at the beginning of 1985. Farm lenders (banks and Farm Credit System) are also affected by those problems. Agriculture's financial problems have their origin in the boom years of the 1970"s. The economic situation then led to increased production capacity but, contrary to expectations, food demand grew slowly. The present years are a period of difficult adjustment, linked to declining farm incomes and farm asset values, on the one hand, and high debt carrying costs on the other. The complex and fundamental character of U.S. agriculture problems suggest that there seems to be no quick solution.

Key-words : USA, farm sector, financial stress, credit policy, economic crisis.

Problèmes financiers agricoles dans le Minnesota
[Farm financial stress in Minnesota]

I.R.M. Bain and J.A. Paulson

In : Cahiers d'Economie et Sociologie Rurales, n° 5, september 1987, pp 75-86

Abstract : Various surveys are compared to study the distribution of financial problems among farmers in Minnesota (USA), a State with a high percentage of farms in financial stress (52 % of farmers had a debt asset ratio higher than 40 % at the beginning of 1985). There is still a great deal of imprecision in currently available data. The paper then deals with lenders' problems and their impact on interest rates. With respect to the demand for financing farms in high financial stress, resources appear to be shortening. Adjustment linked to present problems could then be important.

Key-words : USA, Minnesota, financial stress, credit policy, bank system.

La crise financière de l'agriculture canadienne
[Agricultural financial stress in Canada]

G. Debailleul and P. Erhensaft

In : Cahiers d'Economie et Sociologie Rurales, n° 5, september 1987, pp 87-107

Abstract : Short-term and medium-term financial difficulties encountered by Canadian farm enterprises are related to a chronic deterioration in the capital structure of agriculture in order to develop a typology of financial stress. The relative economic viability of farms is analyzed by size, commodity sector specialization and the degree to which different commodity sectors are regulated by the State. The potential effects of this financial crisis on the evolution of the farm sector and the degree of concentration in Canadian agricultural production are questioned.

Key-words : Canada, farm indebtedness, agricultural policy, financial stress, farm crisis, concentration in farm sector, land value.

Note sur l'économie agricole comparée des Etats-Unis et du Canada
[A comparative note on US and Canadian farm sectors]

G. Debailleul

In : Cahiers d'Economie et Sociologie Rurales, n° 5, september 1987, pp 109-116

Abstract : This is a short comparison between the farm sector of the USA and the Canada : structures, composition of the production ; the main points deals with the farm credit systems.

Key-words : Canada, USA, farm indebtedness, farm credit system.