World leading seed producer Monsanto, said that credit markets were working well in the US agricultural sector, enabling farmers to continue to borrow for the payment of seeds, fertilisers and herbicide.

Terry Crews, chief financial officer of Monsanto said the company had just completed a round of conversations with agricultural lenders.

"These lenders are telling us that in the normal course of business, they are already renewing and increasing credit lines with customers, so the purchases for the 2009 season can begin," Crews said.

A farmer's access to credit is a growing concern given the credit risks, but one-third of US farmers have received their loans from the Farm Credit System, a US government-backed lending organisation specifically for agriculture, said Crews.

A further 40 percent of US farmers borrowed from small community banks in rural areas.

Crews said those banks were tending to hold interest rates steady and were offering new loans.