Credit Restrictions

Another factor influencing agricultural output in the near term is the availability of credit to farmers globally.

Farming requires credit. Farmers borrow at the beginning of the season to buy seed and fertilizer and then repay the bank at the end of the season.

Credit is becoming increasingly difficult to obtain and this is can lead farmers to reduce the acreage planted and/or the amount of fertizer they apply.

These two changes are directly correlated to output and if they happen will lead to shortages in the major grain crops like wheat and corn over the next few years.

Go to Commercial Farm Opportunities