Agricultural credit

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The agricultural credit is one of dedicated credit that the financing of liquidity or of investments in the agricultural sector serves.

General

The production process in agriculture is characterized by high plant intensity , so it requires the heavy use of machines ( agricultural machinery ) and devices , which may require external financing . In addition, in agricultural production, the period between sowing and harvesting has to be bridged financially, since the expenses for seeds are incurred before income can be generated from the harvest. The main borrowers are farmers (“Hofkredit”), but also cooperative goods centers , mills or sugar factories .

history

With the creation of the landscapes in Prussia in the 18th century, the agricultural credit for manor owners began . Their creditors were the landscapes, which refinanced themselves by issuing "scenic Pfandbriefe " . In June 1770, King Friedrich II was the first to recognize the Silesian landscape . It was a credit institution with the help of which the manor owners could issue mortgage bonds with interest at 5%. It was followed in June 1777 by the Kur- und Neumärkische Ritterschaftliche Kreditinstitut , then the landscapes in Pomerania in March 1781, West Prussia in 1787 and East Prussia in 1788. The Groning landscape was created in Holland in 1823 according to the German pattern of "landscapes" .

The increasing mechanization in agriculture required higher capital requirements, some of which had to be covered by outside financing. In the industrialization financed universal banks , however, were not very familiar with the agricultural typical characteristics of these borrowers. Some Landeskreditanstalten dealt primarily with the granting of mortgage loans to farmers. So in 1840 the Hannoversche Landeskreditanstalt was established , which was supposed to help the farmers with the implementation of the Hanoverian agrarian reform of 1833. Also Landesbanken dealt partially with agricultural loans. Finally, special banks were formed which, as agricultural banks ("farmers banks "), concentrated on financing agriculture. These included the rural credit cooperatives , which were brought into being as a result of a bad harvest in 1846 by Friedrich Wilhelm Raiffeisen . They were soon to be found in almost every rural community and were doing a very useful job there. From the Kaliwerke Ummendorf - Eilsleben AG founded in 1908, the Bank für Landwirtschaft AG , Berlin, emerged in 1921 , which in turn took over the Deutsche Bauernbank in 1935 .

In May 1949, the Landwirtschaftliche Rentenbank was established as a promotional bank for agriculture and rural development. Two agricultural credit institutions that still exist today are the Calenberger Kreditverein (1825) and the Ritterschaftliche Kreditinstitut Stade (1826).

Loan types

The financing of liquidity is done by short-term agricultural loans in the form of overdraft facilities for agricultural equipment , raw materials , consumables and supplies . The financing of cattle is done by short or medium-term loans, also by transfer of ownership of the animals saved may be because animals legally considered movables apply. The financing of agricultural machinery and construction work is carried out by long-term investment loans , mostly mortgage- secured and also as an agricultural mortgage are called.

Loan collateral

Compared to loans in other areas of the economy, there are clear differences in agricultural loans with regard to the possible loan collateral . Since farms usually own a lot of land , the buildings on them and the land itself can be used as loan security.

The lending value of the property areas , buildings and machines specified as security can alternatively be determined using the following three different calculation models:

  1. Material value method: Here, a theoretical production value of a similar asset is used as a benchmark;
  2. Comparative value method : The mortgage lending value is determined on the basis of the sales price of a similar good;
  3. Income value method : According to this method, the lending value is determined on the basis of the forecast income that will be achieved with the loaned asset.

Depending on the current situation, banks also use a combination of these procedures. In the case of profitable agricultural land, the income value method is more suitable, in the case of buildings the real value method.

literature

  • Maria Blömer: The development of the agricultural credit in the Prussian province of Westphalia in the 19th century. Knapp, Frankfurt am Main 1990, ISBN 3-7819-0450-4 ( series of publications by the Institute for Bank History Research eV 16), (also: Münster (Westphalia), Univ., Diss., 1989).
  • Hans Greuer: Agricultural credit and its banking organization in the Federal Republic of Germany. Triltsch, Düsseldorf 1963 (at the same time: Cologne, economic and social science dissertation 1962).

Web links

Individual evidence

  1. ↑ Joseföffelholz / Gerhard Müller, Gabler Bank-Lexikon , 1983, column 1053
  2. ^ Günther Schulz, Social and Economic History , 2005, p. 149
  3. ↑ Leopold-Michael Marzi, The Law of the Pfandbriefe and Mortgage Banks in the Past and Present , 2002, p. 13
  4. ^ Karl Heinrich Rau, Principles of Economic Policy , 1854, p. 224
  5. ↑ Hartwig Jessen, The landscape credit system , 1962, p. 25 f.
  6. ^ Peter König: Agricultural loan as a financial injection for agriculture. Retrieved November 14, 2017 .