They may consolidate into a handful of multibillion dollar companies like John Deere Credit and Case Credit. They have deeper pockets than many banks and may be more able to weather downturns in business cycles. Unlike many ag lenders, we came through the ag crisis with a strong reputation for service and demonstrated our willingness to work with customers in both the good times and bad. Even competitors agree that captives have changed ag lending. But they have sped up loan applications for all lenders.
Lending helps parent companies stay competitive on product sales.
We saw this as an opportunity. Agricredit lends with ConAgra, United Agri Products and Helena and seeks more alliances. Deere Credit, too, is a major nonmachinery lender through its Farm Plan, a charge account at 3,800 agribusinesses. It provides farmers capital in alliances with co-ops such as Growmark, Countrymark, Tennessee Farmers and Alabama Farmers. G. Michael Reed, head of PHI Financial Services, says the AgriGreen loan application process is being streamlined for 1998.