Financing Alaska's Farms

Abstract

Analysis of financial records made available by 93 Alaska farmers and homesteaders and information provided by financing agencies shows that farm credit in 1960 had improved considerably since mid-decade. Although ample credit seemed available for existing production levels, little risk money was at hand for setting up new farms. If Alaska continues to grow at the 1960 rate an annual expansion of farm credit resources of $500,000 to $750,000 appears needed. A major problem facing lenders is to coordinate credit extension between agencies, observing limitations imposed by market demands for local products. Major complaints voiced by borrowers are that terms are still too short and that interest rates are excessive.