WASHINGTON-- As you're probably aware, agriculture plays a huge part in our economy. But what you might not know is how important credit is to farmers: they need it so they can fund their crops. Without it, some farmers might not be able to work. So the question now is should farmers worry about obtaining credit?
It is still early to tell how Wall Street's failure might trickle down to the agricultural workers, but the good news is private lenders don't appear to have any difficulties getting loans to farmers. At least for now.
"Right now we have not seen a stampede of farmers coming to our doors, saying they cannot obtain loans from commercial banks, so we're going to have to see how this unfolds and whether this stresses and strains in the financial market could cause our local lenders to have problems being able to make loans," says Melissa Cummins, the farm loan chief for the F.S.A. in Washington.
Cummins stresses that it is still early. She says this all could change, and if it does, it could spell trouble for farmers.
But for now, she says prices have held strong for the past two years, and that is good news for farmers and lenders.