Farm bankruptcies are soaring amid low crop prices, while Trump considers bailout of up to $14 billion

In the second quarter, there were 93 files, According to the Federal Reserve in MinneapolisRight from 88 in the first quarter and hit nearly 47 at the end of 2024.

This is still much lower than its highest level in 169 in early 2020, and the files that followed the two years. But since 2022, the bankruptcy of the farm has been heading up.

Coincides with High production costs and crop prices. For example, corn prices have decreased by 50 % since 2022, while soybeans fell 40 %.

Recently, President Donald Trump’s war has kept this year China, a traditional buyer of American soybeans, from putting any orders with American farmers, who are facing an uncertain harvest season.

But the prices of crops were weak during most of the past decade, except for a brief height during the epidemic, according to Minyabolis.

She added that the Ministry of Agriculture expects to increase the farm’s income this year, as about three quarters of this growth will come from an expected batch in government payments.

the The last survey of the Federal Reserve From the financial conditions on the farm, I found that the weakest income has reduced the liquidity of farmers, which enhances the demand for financing.

Meanwhile, credit conditions deteriorated with nearly 30 % of the respondents in the Federal Reserve areas in Chicago and Kansas City Fed in the provinces of low payment rates against last year, while the share of the Minneapolis Fed area was about 40 % and the St. team was the team St. Louis Fed 50 %.

Certainly, the last height in bankruptcy does not mean that farmers are out of work, and Minypolis Virus pointed out. Forty 12 can help them avoid total liquidation and allow them to continue work, and perhaps on a smaller scale after some restructuring.

However, agricultural trade groups calls on the Trump administration to help enhance the demand for American crops because they appear to be the alarm on the crisis in the farm economy.

This includes reaching a trade agreement with China to start buying American soybeans again and requires fuel with a top mixture of ethanol, which can be made from the atom.

“Soybeans farmers are subjected to severe financial pressure,” The American Soya Association said in a message For Trump in August. “Prices continue to decline, and at the same time our farmers pay much more for inputs and equipment. Farmers in soybeans cannot survive in a long business conflict with our largest customer.”

The one beautiful bill, which was signed in July, included about 66 billion dollars of spending that focuses on agriculture. The vast majority, about $ 59 billion, is intended for the safety network improvements on the farm.

But Trump has also suggested using customs tariff revenues to help farmers, and I told the sources Wall Street Journal On Thursday, the administration is considering a $ 10 billion rescue plan-14 billion dollars with distributions that are likely to start in the coming months. During the first period of Trump, farmers got 23 billion dollars amid a previous trade war with China.

But the CEO of the US Soya Association AgWeb Magazine Farm Last month, “government assistance” gets long, which means that payments provide limited total relief for farmers who then see other rents and costs.

“It is difficult, and I can hear him pressure in the votes of our members. Our members and our board of directors are really concerned at the present time,” said Dicky, who held the position of Deputy Minister of Agriculture in Trump State. “Some say if things do not turn, or if we do not get markets or if we get economic assistance – this is not our first choice – this last year may be in agriculture. This is very frightening.”

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