what will happen if farmers cant get credit, page-7

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    Sorgs you are fortunate enough you have a decision of whether to plant or not. I fear that the toxicity spawned from housing in the debt markets is goingt o perpetuate a similar kind of crisis in the rural sector globally. Already plenty of evidence of it happening. Any expansion that has occurred recently in the agricultural sector is undoubtably debt financed and is under threat through a lack of credit. The marginal production base will find it near on impossible to source credit in the first world let alone the third world.

    Agricultral production is always a function of leverage off the land asset. Now land prices will undoubtably fall in line with falling food prices it could trigger a major wave of bank foreclosures.

    Watch this space ... and the supermarket shelves
 
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