U.S. farm bankruptcies hit an eight-year high

[sandensea]

U.S. farm bankruptcy rates jumped 20% in 2019 - to an eight-year high - as financial woes in the U.S. agricultural economy continued in spite of massive federal bail-out funding, according to federal court data.

According to data released this week by the United States Courts, family farmers filed 595 Chapter 12 bankruptcies in 2019, up from 498 filings a year earlier.

The data also shows that such filings - known as “family farmer” bankruptcies - have steadily increased every year for the past five years.

Even billions of dollars spent over the past two years in government agricultural assistance has not stemmed the bleeding.

Nearly one-third of projected U.S. net farm income in 2019 came from government aid and taxpayer-subsidized commodity insurance payments, according to the U.S. Department of Agriculture.

At: https://www.reuters.com/article/us-usa-farms-bankruptcy-idUSKBN1ZT2YE

A barn sits empty in a Maryland farm under pre-foreclosure short sale.

A recent wave of farm foreclosures has come on the heels of Trump's trade war with China, during which exports to the Asian giant have fallen by nearly 20%.

[kacekwl]

1. It's still a great economy for farmers

corporate farms not family farms. As usual for the trump economy.

[Wellstone ruled]

2. Do not think these

big operations are really making money. The ones I am aware of are just trading dollars and burning up reserves betting on 2020 Harvest to make them whole once again. As long as they can pull forward Financing from the FMHA and the Farm Service Agencies,they might make it. The Operations that are owned by Wall Street Bankers,well,they could care less.

[Nitram]

3. The inevitable result of a trade war with China. In spite of BILLIONS paid to farmers.

Of course, subsidies always go to Big Ag, not family farms.

[Farmer-Rick]

4. Where are all these farm subsidies going?

OK, I don't know everyone but of the 30 farmers I do know here in East TN, none of them received subsidies.

Now I want to qualify that by saying some of them did get fencing, watering stations and feed barns put in with the government picking up about 60% of the costs (They claim to pick up 80% but there are a lot of things involving fence, watering and barn installation that they don't cover such as land clearing and they only cover lowest price which aren't always current.) But it is through a conservation program designed to protect waterways from the destruction of grazing animals. And many of the cost sharing requires large numbers in the herd to be eligible. Thirty head won't cover it.

The commodities program is an insurance policy that you have to buy. It doesn't come free.

I think if we could drill down into these supposed small farm subsidies, you'll find they didn't go to small farms or required up front lump sum payments to obtain.

These subsidies just sounds very fishy to me. Of course about 60% of the farmers I know are into livestock and sell grain/veggies/herbs on the side.