Trump’s trade war = record bankruptcies for farmers


❝ Hard times for farmers got tougher with President Donald Trump’s trade war. Now Midwestern farmers are filing the highest number of bankruptcies in a decade, according to a Wall Street Journal analysis of federal data.

And farmers aren’t hopeful about this year.

❝ Twice as many farmers in Illinois, Indiana and Wisconsin declared bankruptcy last year compared to 2008, according to statistics from the 7th Circuit Court of Appeals, the Journal reported. Bankruptcies in states from North Dakota to Arkansas leaped 96 percent, according to figures from the 8th Circuit Court of Appeals.

Farmers are being battered by sinking commodity prices — and stiff tariffs from China and Mexico in retaliation for Trump’s tariffs on imports…

Farmers fear it will take years to rebuild those trading relationships.

Don’t worry, be happy, Trump is on your side. Stealing your wallet.

4 thoughts on “Trump’s trade war = record bankruptcies for farmers

  1. McDonald says:

    “American farmers confront a mental health crisis as revenues decline and debt piles up”
    “Colorado farmers and ranchers are struggling — and it can take a big mental toll”
    A Canadian University study in 2016 found farmers are among the most vulnerable groups when it comes to mental health, reporting higher levels of stress, depression, emotional exhaustion and burnout than the general population. The same study found 40 per cent of agricultural producers would feel uneasy getting professional help due to the stigma that exists around the issue.
    Meanwhile: “‘It’s Probably Over for Us’: Record Flooding Pummels Midwest When Farmers Can Least Afford It”

  2. Cassandra says:

    “Wall Street banks bailing on troubled U.S. farm sector”
    “…after years of falling farm income and an intensifying U.S.-China trade war – JPMorgan and other Wall Street banks are heading for the exits, according to a Reuters analysis of the farm-loan holdings they reported to the Federal Deposit Insurance Corporation (FDIC).
    The agricultural loan portfolios of the nation’s top 30 banks fell by $3.9 billion, to $18.3 billion, between their peak in December 2015 and March 2019, the analysis showed. That’s a 17.5% decline.
    …The retreat from agricultural lending by the nation’s biggest banks, which has not been previously reported, comes as shrinking cash flow is pushing some farmers to retire early and others to declare bankruptcy, according to farm economists, legal experts, and a review of hundreds of lawsuits filed in federal and state courts.
    Sales of many U.S. farm products – including soybeans, the nation’s most valuable agricultural export – have fallen sharply since China and Mexico last year imposed tariffs in retaliation for U.S. duties on their goods. The trade-war losses further strained an agricultural economy already reeling from years over global oversupply and low commodity prices.
    …David Oppedahl, senior business economist for the Federal Reserve Bank of Chicago, said the banking community is increasingly aware of how many farmers are struggling.
    “They don’t want to be the ones caught holding bad loans,” he said.”

  3. Gwailo Joe says:

    “US responsible for its farmers’ woes” (China Daily 8/15/19) Last week the Commerce Ministry said Chinese enterprises have halted the purchase of US agricultural products following Washington’s threat to impose 10 percent tariffs on another $300 billion of Chinese goods. Two experts share their views on the issue with China Daily’s Yao Yuxin.
    See also “US is paying price for launching trade war with China” (Xinhua News Agency 8/24/19)
    China Daily is an English-language daily newspaper owned by the Publicity Department of the Communist Party of China and published in the People’s Republic of China.
    Xinhua News Agency is the official state-run press agency of the People’s Republic of China and the largest news agency in the world in terms of correspondents worldwide.

  4. Bellwether says:

    “How a major U.S. farm lender left a trail of defaults, lawsuits” “…Five years later, after aggressively expanding its U.S. farm loan portfolio, the bank called in Kruger’s loans as corn and soy prices collapsed and the United States was starting a trade war with China. As the U.S. agricultural economy sours and farmers’ financial woes pile up, BMO Harris is leaving behind a trail of farmers such as Kruger who have lost nearly everything.
    The bank, a subsidiary of Canada’s Bank of Montreal, has struggled to recoup some of its investments through a slew of bitter legal fights, according to a Reuters review of court documents and bank regulator data, as well as interviews with dozens of U.S. farmers, bankers, and former and current BMO Harris employees.
    The plight of BMO Harris and its customers reflects broader distress in the U.S. farm sector. Farmers are struggling to pay back their loans or obtain new ones. Shrinking cash flow is pushing some to retire early and a growing number of producers to declare bankruptcy, according to farm economists and legal experts.
    …The bank declined to comment on any individual loans or borrowers, or on the prospect that it could face additional defaults based on its delinquency rates.”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.