HADDONFIELD, N.J. (DTN) -- Deterioration in the credit quality of ethanol and livestock producers is prompting a flurry of debt restructuring and higher loan losses at the Farm Credit System and other ag lenders.

In a report issued this week, the Farm Credit System's Funding Corporation said that it had set aside $733 million to cover anticipated loan losses for the nine-month period ending Sept. 30, up from $124 million a year earlier. Most of its problem loans are concentrated in ethanol, dairy and swine, although other specialties like forestry had also been hurt by the housing recession.

Overall, 95 ...