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This article demonstrates the evolving credit methods and managerial strategies in agribusinesses, highlighting implications for Extension agents.
The agricultural sector continues to undergo a major transformation from traditional family farms to industrial, vertically integrated producers of differentiated branded products. As this transformation occurs, the financial structure, sources of credit, and managerial strategies employed by these firms also evolves. This article introduces Extension agents to the rapidly changing industry structure, methods of credit underwriting, loan products, or channels of fund delivery being applied to large-scale farming operations, more accurately described as "agribusinesses."
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Cole Gustafson (2002) studied this question.
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