FARM BUSINESS NEWS
Know Before You Grow
Marcia Zarley Taylor DTN Executive Editor
Mon Mar 25, 2013 09:08 AM CDT

HADDONFIELD, N.J. (DTN) -- When sizing up the risks of their largest borrower credit lines this month, veteran lenders will be much more likely than usual to practice the old adage, "trust but verify." New scrutiny will fall especially hard on what lenders call "alpha" farms -- those that farm at least 5,000 to 10,000 acres, own less than a third of their land base, grow high-cost corn and haven't rehearsed a risk management plan for the commodity market's volatile moves.

The recent bankruptcy of a 46,000-acre Michigan farm with more than $90 million in debt has raised alerts for ...

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