Project Overview
Agricultural businesses rely heavily on borrowed capital for financing inputs, machinery, equipment, and land. Borrowing is typically a less expensive way to increase equity capital, but it also increases the risk of equity loss. Therefore, the management of debt is critical for most farm businesses. Managing debt means choosing from among myriad sources of financing (including input suppliers, equipment dealers, banks, and Farm Credit) who offer differing interest rates, rebates, points, and other non-interest costs. Educational efforts focused on teaching agricultural decision makers how to determine the true cost of financing so they can accurately evaluate financing alternatives. Excel-based financing decision aids were used to help decision makers evaluate the cost of capital from supplier financing, machinery and equipment financing, and real estate purchases. Educational efforts took the form of classroom workshops with decision makers, in-service training for extension agents, and presentations at the Pennsylvania Agricultural Bankers Conference and the National Extension Risk Management Education Conference.
Number of Participants: 160
PROMOTIONAL MATERIALS
There are no promotional materials available for this project.
EDUCATIONAL MATERIALS
There are no educational materials available for this project.
REPORTS & EVALUATIONS
There are no reports or evaluations available for this project.