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. CFA has long made operating loans, but has recently made it easier for local co-ops by providing lending services and lending staff, says Michael B. Peck, head of marketing. Shopping around Comparing interest rates among captives is tricky, since most sometimes use low or subsidized rates to move products. Rates between Deere dealers also vary, though in practice, machinery loans are usually 1.5 to 2 percentage points abov e prime, dealers say.
Net worth is a factor.
Also complicating comparisons is the fact that companies can make up interest rate subsidies in the price of their product. But even bankers recommend captive financing if rates are low and the price is unchanged. The ABA's Blanchfield did when he was at a New York ag bank. Leasing is also growing. Santos has stuck with Case since that dealer was willing to finance machinery when he started on 30 acres in 1970.