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Posted Wed Dec 3 2008: from Mongabay:
Agricultural firms cut incentives for Amazon deforestation
As grain prices plummet and concerns over cash mount, agricultural giants are cutting loans to Brazilian farmers, reports the Wall Street Journal. Tighter farm credit may be contributing to a recent slowing in deforestation in the Brazilian Amazon, where agriculture is an increasingly important driver of forest clearing.... Now strapped for cash and facing rising risks in the credit markets, agricultural firms including Archer-Daniels-Midland Co., Bunge Ltd. and Cargill Inc., and equipment suppliers like Deere & Co. are reducing loans and advance cash payments to farmers at a time when production and borrowing costs are rising. "As the volatile commodities market and the global financial crisis have increased the risk and expense of doing business in Brazil, big grain companies are reining in lending," writes Etter.
[Read more stories about: forests, deforestation, rain forest depletion]

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