Jason Ward with Northstar Commodity Investment Co., says the financial crisis affects the U.S. farmer directly and indirectly.
"AIG especially is a large player in the ag sector and their spiraling is causing widespread commodity liquidation," Ward says. "Banks are tightening credit with everyone, which directly tightens credit at ag banks, so end-users wanting to buy commodities ahead (like a livestock producer wanting to buy corn) simply cannot get the credit necessary to do so because his bank is tight.
It's a good thing the 2008 farm bill has already been passed, or agriculture may have faced more pressure to face further reductions
Farm Journal's John Phipps weighs in on the crisis with his thoughts:
Agriculture will not go unscathed in financial crisis, although my investigations lead me to suspect the consequences are not immediately obvious. After reading reams of stuff about what the heck is going on in Washington and New York, maybe these links and guesses will help.
Bryce Knorr from FarmFutures:
With the panic in the financial markets beginning to subside, traders are again turning their attention to the size of the 2008 crop and the potential for very tight supplies into 2009. Rains this week are expected to focus on the northwestern