World Economies Recoil And Wait
2 December 2008 The rollercoaster that we call the global economy has lenders on their heels, and farms could be feeling the fallout from the tightening credit market. After wild undulations in world stock markets in most of 2008, major indices have tumbled sharply in the fourth quarter.
Banks, in turn, have responded to sinking stocks and ice-cold consumer confidence by squeezing credit, further worsening fears of global recession. Last week, The Wall Street Journal reported that multi-national growers are finding it harder to get loans sufficient to cover the rising costs of fertilizer, pesticides and seed.
But financial opportunities exist for those who have cash on hand. After reaching record highs earlier this year, commodity prices are plummeting. Fertilizer futures are beginning to follow suit, and other inputs show signs of tapering. That could entice growers to stockpile inputs while there is a price break, and a well-capitalized company might be able to extend lines of credit to their best customers to keep inventory moving and build strong relationships for a time when clients have better cashflow.
Difficult economic times require business ingenuity. That’s what drew me to Farm Chemicals International. Aside from the noble pursuit of feeding the world, the crop protection industry is poised for exponential growth. It’s an exciting time to be part of the agriculture industry as burgeoning middle classes create unprecedented demand. And I’m looking forward to steering FCI to cover the issues that affect your business the most.
But I need your help: Let me know what’s going on with your business. Our success is based on how well we serve you, so drop me a line and let me know what’s on your mind. I’m looking forward to it.
Dave Frabotta, Editor
[email protected]
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