Banking for the agricultural sector OECD countries: Perspectives from the United States experience

The paper briefly discusses early challenges to developing a sound agricult ural banking system in the United States (US), noting institutional, statut ory, and regulatory innovations that improved the industry's performance. E volution of agricultural banking systems in OECD countries is presented. Th e importance of creating a sound statutory, regulatory and institutional fo undation on which to build agricultural finance and banking systems is emph asised, and examples are discussed. Recent national survey data regarding U S commercial farmers' expectations of the lenders with which they do busine ss are outlined. Finally, the likely effects of structural changes in the a gricultural sectors of the US and Western Europe on agricultural producers and their lenders are examined, along with the implications for agricultura l producers and agricultural banking systems in transition economies.