US Farmers Falling Behind On Credit Payments

Reuters are carrying a story today which says that an inordinate number of US farmers are falling behind on credit payments as grain prices decline & the credit crunch bites.

Accounts overdue by 91 days or more jumped 82% year-on-year in January, according to PayNet Inc, a company that collates loan information from more than 200 US lenders, says the report.

One interesting point is that severe delinquencies, which is what PayNet call accounts more than 91 days in arrears, only rose by 30% across all 23 sectors that PayNet cover.

This would clearly suggest that farmers are feeling the pinch even more than other sectors of US industry.

What else does it forewarn us of ahead of spring fertiliser application and soybean & corn planting season I wonder?