News

Implement dealer loans on the rise

An ag economist says more farmers are getting loans through implement dealers than they were ten years ago.

Todd Kuethe with the University of Illinois tells Brownfield over the last decade, about a third of the ag sector’s long-term non-real estate debt has become financed through implement dealers.

He believes the farmers could be getting more services from equipment dealers or it’s just more convenient.  “Maybe you get quicker turn around on machinery maintenance or inspections or maybe they’ll give you a better deal on your used equipment, or you can unload new equipment right when you’re getting new ones.”

Kuethe says there is not a lot of difference in the data that shows implement dealers are offering more competitive loans to farmers or to farmers who might have been turned away from traditional financial institutions.

Smaller farms and older and more educated farmers were also more likely to use implement dealer financing as well as cotton growers.

AUDIO: Interview with Todd Kuethe