February 18, 2021

Understanding the Five C’s of Credit

Purdue University agricultural economist Brady Brewer is joined by Purdue agricultural economist Michael Langemeier to discuss credit underwriting and the criteria financial institutions use to determine eligibility of an applicant in this episode of the Purdue Commercial AgCast. Character, capital, capacity, collateral, and conditions are the five Cs of credit used in credit underwriting. These metrics are used for credit ratings to quantify and decide eligibility, interest rates and credit limits of borrowers. This episode focuses on what credit analyst means for farmers, how each of the 5 Cs are measured, and how farms can use this information for their gain and to manage risk.

TAGS:

TEAM LINKS:

RELATED RESOURCES

Liquidity and Repayment Capacity

October 1, 2026

Purdue analysis of FINBIN data shows how liquidity and repayment capacity have differed across crop farm sizes from 2007 to 2025, with notable changes in the gap between smaller and larger farms.

2026 Trends in Farmland Price to Rent Ratios in Indiana

September 9, 2026

Indiana farmland values remain elevated relative to the cash rent they generate. Purdue agricultural economist Michael Langemeier examines what the farmland price-to-rent ratio can tell us about land values, future returns and the risks facing buyers.

Comparison of Long-Run Rates of Return for Crop and Livestock Farms

August 13, 2026

Have crop farms or livestock farms generated better long-run returns? Michael Langemeier compares rates of return for beef, dairy, diversified, and crop farms from 2007–2025, revealing why recent livestock price strength hasn’t translated into a clear long-run advantage.

UPCOMING EVENTS

Weathering Water Extremes: Connecting Soil Health, Drainage, Irrigation, and Farm Resilience

Join educators from across the Midwest to build skills for communicating soil health concepts on Nov. 4-5, 2026. In the field, we’ll evaluate the relationship between soil health and water management focusing on irrigation and edge of field practices. The in-service will have both classroom and on farm demonstrations.

Land of Opportunity: A Conference for Farmland Owners!

The Land of Opportunity: A Conference for Farmland Owners will be held at two locations on October 5 and October 6, providing farmland owners with valuable information and resources to help them make informed decisions about their land. The conference will feature keynote presentations, educational breakout sessions, and networking opportunities designed specifically for those who own, manage, or have an interest in farmland.