According to Mark Weinraub of Reuters, "The U.S. rural economy has weathered the global recession better than most sectors due to steady demand for agricultural products, stable land prices and healthy credit lines for farmers." In addition, farm lenders have continued to make loans because they were not caught up in the risky lending practices that crippled other institutions.
"The smaller, rural and ag banks have remained pretty strong throughout this time of financial turmoil," saidDavid Oppedahl, business economist for the Federal Reserve Bank of Chicago. "In agriculture, the financial wherewithal is there for a good operator who wants to finance this year." Also, "Prices for agricultural commodities have fallen sharply from highs reached during the summer of 2008 but are still well above historical trends," writes Weinraub. Agriculture commodities have been buoyed by a weak dollar, as of late, which boost demand for U.S. goods abroad. All these factors could mean a shorter recovery from the recession for rural America.
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