Based on the provided information, what would be the feasibility determination for the farmer with an annual crop loan request of $50,000?

The determination of feasibility in this context hinges on the ability of the farmer to support the requested loan amount of $50,000. If the plan is deemed feasible with the option of taking existing equity in chattels (which include personal property such as equipment and livestock) for additional security, it suggests that the farmer has valuable assets that could mitigate the lender's risk. By providing collateral, the farmer demonstrates a commitment to the loan and increases the likelihood of repayment, making the overall loan proposition stronger in the eyes of the lender.

This option indicates that the loan request can be supported through the farmer's current financial situation and asset backing. It aligns with sound lending principles where having security can lower the risk for the lender while allowing the farmer the necessary funds to cultivate their crops. Offering existing equity also helps in establishing a more robust financial profile for the borrower, enhancing the trustworthiness of the loan application.

In contrast, options suggesting non-feasibility would imply an assessment that either the loan amount is too high relative to the farmer’s ability to repay or that the financial planning lacks stability and security. By choosing to utilize the equity in chattels for collateral, the feasibility of the loan application is strengthened, contradicting the non-feasible judgments proposed