Credit Control in Selected Retail Farm Supply Cooperatives -- Area III -- Wisconsin, Minnesota, North Dakota, South Dakota, and Northern Iowa

Excerpts from the report: Farmers are using an increasing amount of credit at their farm supply cooperatives. Several factors that may account for this are: (1) Farmers are using more commercial feeds, fertilizer, and pesticides due to technological advances; (2) farm size is increasing; (3) farm incomes have declined in recent years in the face of rising costs; and (4) distributors of farm supplies generally grant credit as a part of their service. This study--the third in a series covering different areas--provided information on policies and practices for successful control of credit by farm supply cooperatives. It covered the operations of 22 associations, handling a diversified line of supplies, located in the upper Midwest. They were doing more than one-third of their business on credit and were above average in their control of credit. The purpose of this study is to determine (1) trends in the use of credit by local diversified farm supply cooperatives, and (2) practical policies and procedures for controlling credit.