Agricultural banks and lenders have performed well during the economic crisis; however, more farmers are having problems repaying loans due to unemployment in rural areas. “The increased unemployment in rural areas has certainly impacted debt repayment capacity of many farm borrowers,” said University of Illinois Economist Paul Ellinger. “Non-farm incomes are being jeopardized with the amount of unemployment in this area.” During testimony before a House Agriculture Committee hearing to discuss the 2012 Farm Bill, Ellinger suggested that loan amounts be increased for government farm credit programs to compensate for the increased cost of feed, rent and equipment. (USDA Radio Newsline).
