Agricultural Economics Department

 

Cornhusker Economics

Date of this Version

4-19-2023

Document Type

Article

Citation

Cornhusker Economics (April 19, 2023)

Agricultural Economics, University of Nebraska-Lincoln

Abstract

In the context of family farms, includes some general points to consider before you sign a loan guarantee for a family member who is heavily in debt.

Conclusion: Having to consider whether to co-sign a child's loan is a very difficult situation-no one wants to be part of losing part of the family farm or ranch to loan foreclosure. But if the loan guarantee isn't part of a financial turnaround plan that has at least a fighting chance of success, don't sign the guarantee unless you absolutely don't need the money for your own retirement.

Share

COinS