Yesterday, I spent some time talking to Dr. Danny LeRoy, Associate Professor of Agricultural Economics at the University of Lethbridge. We spoke at great length about the economy and the affect it will have on agriculture. I was speaking to Dr. LeRoy for research that I was doing for my Grainews column. To say that Dr. LeRoy is concerned about the situation would be an understatement. Here as excerpt from the column that I wrote to be released in the next issue of Grainews.
I spoke with Associate Professor in Agricultural Economics at the University of Lethbridge, Dr. Danny LeRoy about what will be the impact of this economy on farmers. Dr. LeRoy states that €œrealistically the amount of agricultural products produced is not going to substantially change in 2009 but the environment and risks for farmers will.€ Dr. Leroy continued, €œThe farms most at risk are the ones that are relying on cheap credit. If interest rates were to rise due to inflation with commodity prices continuing to drop, it will be a shock to the farming system. It might create a financial situation that reminds us of the 1980€™s.€