Experts say corn plantings could fall by as much as 25 percent in the new season because of the difficulties in obtaining financing, says Agriculture.com. Growers planted 10.6 million acres this season. “Corn is the most expensive crop, while the current price does not seem attractive,” said the story about the impact of Argentine default. The inflation rate is 30-40 percent and interest rates charged to farmers are similar. Growers tend to hold on to grain and sell it as needed to raise cash. Still, 39 percent of grain farmers will need to finance the next crop, says Agriculture.com.
Argentina is one of the major agricultural nations of the world and is estimated to account for 14 percent of global corn exports this year, says USDA. It also is a leading wheat and soybean grower.