Agricultural Economics Department
Date of this Version
4-19-2023
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.
Included in
Agricultural and Resource Economics Commons, Agricultural Economics Commons, Entrepreneurial and Small Business Operations Commons, Family, Life Course, and Society Commons, Finance and Financial Management Commons, Rural Sociology Commons