Most financial institutions had a good understanding of troubled debt restructuring (TDR) during the “work-out” years, 2009–2011. Most of the credits were commercial real estate or land development loans, and it was relatively easy to identify them as TDRs. There was little doubt that the borrowers were experiencing financial difficulties, and it was also obvious that the financial institutions were making a concession in most work-out situations. Now that most of the troubled commercial real estate and land development loans have been worked out with an improved economy, financial institutions who are involved in agricultural lending are dealing with TDR determinations on Ag credits that have underperformed due to low commodity prices.
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