2 oktober 2008
‘Limited impact of credit crisis on agriculture’
The financial crisis will not influence the agricultural sector greatly, believes Dr. Arie Oskam, full professor of Agricultural Economics and Rural Policy. At most, it will concern indirect consequences. Oskam: ‘The crisis is taking place in the United States and here and there, it does infect the EU. Whenever that happens, EU countries intervene. This largely passes by agriculture.’
The core of the financial crisis lies in the real-estate market in the United States, Oskam explains. It is the question whether the crisis will spread to what Oskam calls the ‘real economy’, in other words whether the financial crisis will also have important consequences for production, the labor market and income. Furthermore, the effects on the agricultural sector will be limited relative to other sectors, says Oskam. That is because agriculture is less sensitive to recessions than other sectors.