Monsanto sees credit continuing to U.S. farmers
By Carey Gillam
KANSAS CITY, Mo., Oct 8 (Reuters) - Monsanto Co (MON.N), a global leader in sales of agricultural seeds and technology, said on Wednesday it saw credit continuing to flow to U.S. farmers as a new planting season for key crops approaches.
Despite tight global credit markets, many U.S. agricultural lenders have indicated they are not cutting back on loans to farmers, who have been enjoying some of the highest prices in years for corn, soybeans, wheat, and other crops, Monsanto chief financial officer Terry Crews said.
Some of largest agricultural lenders told Monsanto they were renewing and increasing credit lines to customers for purchases for the new season, Crews said.
"A farmer on solid financial footing should have no trouble gaining access to any credit they need to run their normal operations," Crews said in a conference call. "There continues to be confidence in the availability of credit for farmers."
Crews said Monsanto also was positioned to extend credit to "strong credit-worthy" farmers who needed it
St. Louis-based Monsanto is leader in developing biotech seeds and a leading provider of conventional fruit and vegetable seeds and herbicide products, including the top-selling Roundup brand.
Crews said Monsanto was "monitoring" the credit situation and farmer liquidity in Brazil and Argentina but was optimistic about the situation there for farmers as they plant new crops.
"We have not seen any issue with farmers accessing credit for inputs," Crews said.
Crews' comments echoed those of Federal Reserve Bank of Kansas City economist Jason Henderson, who said last week U.S. farm credit continued to look strong.
Yet some analysts questioned whether that was holding true as the credit crisis deepened.
The International Monetary Fund, in its bleakest forecast in years, said on Wednesday the world economy was set for a major downturn with the United States and Europe either in or on the brink of recession.
U.S. farmers are harvesting corn and soybean crops now and planting winter wheat, and will be looking to buy supplies for a spring planting season in the next few months.
"That (credit) is definitely a concern getting ready for this next season," said Prudential Financial analyst Shawn McCambridge. (Reporting by Carey Gillam; Editing by David Gregorio)
