Agricultural Lending

Glossary

Agister’s Lien — A statutory lien granted in most states to help assure a feedlot will be paid for feed and yardage services rendered. A perfected agister’s lien grants the feedlot a first security interest in a customer’s cattle and takes preference over a purchase money security interest.

Agronomy — Study of the management of land resources and scientific crop cultivation.

ASCS — Agricultural Stabilization and Conservation Services. Government agency administering enrollment and compliance with government programs.

Backgrounding — Allowing lighter feeder cattle to graze on wheat or grass for weight gain prior to initiating the finishing process in feed yards.

Barrow — Castrated male pigs raised for slaughter.

Boars — Male pigs used for breeding purposes. Their weight can reach 800 lbs.

Bu — Abbreviation for bushel. Bull. Male cattle, usually of breeding age. Calf. Young male or female cattle.

Carryover — Any amount of short-term operating debt left unpaid due to inability of borrower’s operation to generate sufficient income. This amount is “carried over” and restructured into longer term debt.

Cash Grain — Harvested crops to be sold in the market.

Commodity Credit Corporation (CCC) — Conservation Reserve Program (CRP). Program established to prevent the

Conservation Reserve Program (CRP) — Program established to prevent the erosion of highly erodible farmland and limit crop production. Land enrolled in the program generally cannot be tilled for the duration of the contract.

Conversion Rate — The number of pounds of weight gained from number of pounds of feed consumed. Information is used to determine feed yard efficiency, adverse impact of weather, and suitability of livestock to a geographic region.

Cow/Calf Operation — Borrower owns breeding livestock with income derived from the successful reproduction and sale of offspring.

Cover Crop — Crop planted to improve soil and/or prevent erosion.

Crop Share Lease — Land leased by a farmer in exchange for a percentage share in the crop production.

Cull — Animals no longer desired for production or breeding purposes and are sold in the market.

Custom Work — . Machine work, particularly crop harvesting, done for others on an hourly or acreage basis.

Cwt — Abbreviation for hundred weight, a common measure for agricultural products. For example hogs, cows, and milk are priced by the hundred weight or cwt.

Dairy Cow — A female that has already had a calf; therefore, capable of milk production.

DHIA — Dairy Herd Improvement Association. Cooperatives that provide financial and other management information to its member farmers.

Deficiency Payment — Terminology normally associated with proceeds paid to a farmer from government subsidy programs.

Duroc — A common breed of hogs. Other common breeds are Chesterwhites, Hampshire, York, and Poland China.

Ewe — A mature female sheep.

Farm Credit Service — Government sponsored lending enterprise Formerly known as Federal Land Bank (FLB) and Production Credit Association (PCA).

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