In this example, "declining values" is the subject.

When the subject is not immediately followed by its verb, be on the lookout for a subject-verb error!

First, we have a prepositional phrase (FOR farm equipment and land). Then we have a modifier that describes farm equipment and land (the collateral against which...). Try to read the core of the sentence without the junk, and you'll have "Declining values is going to force".

In my opinion, the key to SC is a divide-and-conquer approach. Once we know that a S-V error is likely, just skip (temporarily) anything that is not your verb!

Is the OA D?

theachiever wrote:Declining values for farm equipment and land,the collateral against which farmers borrow to get through the harvest season, is going to force many lenders to tighten or deny credit this spring.

A.the collateral against which farmers borrow to get through the harvest season,is

B.which farmers use as collateral to borrow against to get through the harvest season,is

C.the collateral which is borrowed against by farmers to get through the harvest season,is

D.which farmers use as collateral to borrow against to get through the harvest season,are

E.the collateral against which farmers borrow to get through the harvest season, are

I usually identify the Subject and Verb correctly but yet kind of confused as to what is the catch/ trick in identifying subject and verb in such sentences.

A which clause set off by commas serves as a NON-ESSENTIAL modifier.
A non-essential modifier can be removed without changing the core meaning of the sentence.
If we omit the which clause in A, B and C, we get:
Declining VALUES for farm equipment and land IS going to force many lenders to tighten or deny credit.
The subject here is VALUES.
Declining and for farm equipment and land serve to modify this subject.
What kind of values?
DECLINING values.
What kind of declining values?
Declining values FOR FARM EQUIPMENT AND LAND.
Since values (plural) does not agree with is (singular), eliminate A, B and C.

In D, use as collateral is redundant with to borrow against: to use X as collateral MEANS to borrow against X.
Eliminate D.

The correct answer is E.

rami26 wrote:Is the OA D?

OA is E

In option D is the referent of "which" is ambiguous??

GMATGuruNY wrote:

theachiever wrote:Declining values for farm equipment and land,the collateral against which farmers borrow to get through the harvest season, is going to force many lenders to tighten or deny credit this spring.

A.the collateral against which farmers borrow to get through the harvest season,is

B.which farmers use as collateral to borrow against to get through the harvest season,is

C.the collateral which is borrowed against by farmers to get through the harvest season,is

D.which farmers use as collateral to borrow against to get through the harvest season,are

E.the collateral against which farmers borrow to get through the harvest season, are

I usually identify the Subject and Verb correctly but yet kind of confused as to what is the catch/ trick in identifying subject and verb in such sentences.

A which clause set off by commas serves as a NON-ESSENTIAL modifier.
A non-essential modifier can be removed without changing the core meaning of the sentence.
If we omit the which clause in A, B and C, we get:
Declining VALUES for farm equipment and land IS going to force many lenders to tighten or deny credit.
The subject here is VALUES.
Declining and for farm equipment and land serve to modify this subject.
What kind of values?
DECLINING values.
What kind of declining values?
Declining values FOR FARM EQUIPMENT AND LAND.
Since values (plural) does not agree with is (singular), eliminate A, B and C.

In D, use as collateral is redundant with to borrow against: to use X as collateral MEANS to borrow against X.
Eliminate D.

The correct answer is E.