Finance and Financial Management Commons^™

Assessing The Current Efficiencies Of Farm Credit Of Western Arkansas, Hailey Paulsen

Agricultural Economics and Agribusiness Undergraduate Honors Theses

Farm Credit is a unique banking structure, as it is a cooperative which pays patronage dividends to its members. As such, the rates for loans (nominal interest rates) that Farm Credit offers can be slightly higher than larger commercial banks because the patronage payment can offset some, all or more of interest rate difference, which results in an effective rate. Farm Credit, like other globally evolving industries, must continuously look for ways to differentiate themselves to compete for new customers and retain existing ones. Thus, this study sets out to survey the members of Western Farm Credit of Arkansas to …