Issan Farmer's Shock with uS Farm Crisis

Issan Farmer's Shock with U.S. Farm Crisis

Posted by Tawan , Reader : 225 , 07:56:01
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Issan farmers may see the U.S. sub-prime crisis affecting their future as well. Conditions are very similar to the U.S. 1980 farm collapse. Increasing farm debt that caused the collapse of 300 agriculture banks in the U.S. Seeds and fertilizer are doubling in price. Worldwide increases in commodities prices leading more U.S. farmers to take on more debt. If commodities prices fall, recent investments in machinery and land will cause the debt to be more than the value of the farm exactly as the residential mortgage market.

U.S. subsidies for ethanol production have led more farmers to plant corn. The recent political backlash in the world with food riots from increasing food prices has shown rushing into bio-fuels production has been poorly planned.
Issan farmers will be affected by a new sub-prime farmer’s crisis adding more trade and financial sectors shock from the U.S.