Farmers & the Credit Crunch

[Kanastrous]

A lot of independent farmers buy their new seed, upgrade equipment, etc on credit against their next round of crops.

Come the new season, are we looking at a farm-production crunch as a consequence of the credit crunch? Will only small farmers be harmed? Are the corporate mega-farm systems cushioned from the credit markets to such an extent that they'll be unaffected?

[tim31]

If the US is like AU, the government will be smart enough to not let things slide as far as agriculture is concerned. That said, I'm hoping that the Australian federal government doesn't forget about the drought while they're busying themselves with damage control re: the greater economy.

My brother-in-law is currently paying off a loan on a tractor(for those who don't know, the kind of tractors they use on big farms cost as much as a small house); the concept of running a business where you only get paid two or three times a year means that yes, you're dependant on credit. My sister has mentioned that between the drought and the credit situation, he has a lot hanging over his head, but their weekly living income is derived from her salary as a school principal, so it's not all bad news for them.