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Thread: Farm bankruptcies surpass Great Recession levels in upper Midwest

  1. #1

    Farm bankruptcies surpass Great Recession levels in upper Midwest

    Farm bankruptcies surpass Great Recession levels in upper Midwest
    https://www.axios.com/trump-trade-wa...d4a48707e.html



    An analysis by the Federal Reserve Bank of Minneapolis found that 84 farm operations in the upper Midwest filed for Chapter 12 bankruptcy from June 2017 to June 2018.

    Why it matters: The number of bankruptcies filed by these farm operations is double the total from 2014 and even surpassed the mark hit in 2010 at the peak of the Great Recession. Current price levels and trends suggest the number will continue to rise, according to the report.



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  3. #2
    Rising interest rates will do that.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

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    You cannot have liberty without morality and morality without faith

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    Those who fail to learn from the past are condemned to repeat it.
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    A Zero Hedge comment

  4. #3
    Farm Aid II!
    Quote Originally Posted by Zippyjuan View Post
    Ron Paul know some weird people...



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  5. #4
    Only 84 farms went bankrupt? That's really low turnover. May try getting rid of subsidies, allow a lil bit of competition, then see them eat each other every year.
    In New Zealand:
    The Coastguard is a Charity
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    5% of the national vote, gets you 5 seats in Parliament
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    Constitutional right to refuse any type of medical care

  6. #5
    Not many Mom-n-Pop farms left...

  7. #6
    Quote Originally Posted by Swordsmyth View Post
    Rising interest rates will do that.
    While fluctuating, rates have been falling due to markets like housing (builder sentiment, new buys, ect) slowing.

    It's a "pick your poison" thing.....

    Want the Fed to keep rates low to facilitate cheap borrowing to keep pushing the economy? That will push rates up naturally as that economy creates inflation.

    Want the Fed to raise rates to it's neutral goal of 3% to attempt to slow that "hot run in the economy"? That creates inflation.

    The worst thing Trump EVER did was use the economy as "proof" of his policies. Because market confidence in his election along with his tax cuts, coupled with the "free" money stemming from low rates established during Bush and Obama trying to keep the economy from imploding created a boom. A boom that has been augmented with his tariffs that have companies moving a LOT of goods as fast as they can trying to beat tariff deadlines. He should have stuck to his words as Candidate Trump when speaking to the economy and markets as being bubbles built on false data.

    Because one thing not talked about much is that tariffs create inflation. Low interest rates create inflation. We all know inflation is bad. Raise rates to combat inflation and you increase the strength of the dollar. When the dollar increases in strength it puts pressure on all that debt held in USD (think emerging markets), causing that debt to not be serviceable. That leads to debt default on US financial groups who made the loans/investments. We all remember what happened around 10 years ago when financial companies had their debt assets defaulted on.

    Basically.....we're screwed. And I'm confident everyone here knows this has been a long time building, which is why I say that Trump made a HUGE tactical error in doing a 180 on his position on financials in the US once he was elected and claiming ownership of this economic mess (even though he's doing the same things he was bashing his predecessors for). Because my fear is if it all pops under him he's now claimed responsibility which means people will want "chance" at the polls. And with this disgusting affinity for socialism we see rising across the nation.....I'll give you three guess what "change" they want......
    "Self conquest is the greatest of all victories." - Plato

  8. #7
    https://thehill.com/policy/finance/4...new-fed-report

    Report only considered a few states.

    At least 84 farms filed for bankruptcy from June 2017 to June 2018 in Wisconsin, Minnesota, Montana, and North and South Dakota, according to analysis from the Federal Reserve Bank of Minneapolis.
    More than 60 percent of the reported bankruptcy filings for the region were in Wisconsin, which could suggest a large number of dairy farm bankruptcies. Wisconsin is the country's second largest producer of milk.

    Depressed prices on farm goods such as corn, dairy and soybeans are also likely leading to a spike in Chapter 12 filings, according to the report. China has also largely closed its market to U.S. soybeans amid the fight over trade.

    Chapter 12 allows repayment of debts over as many as five years. It was set up after the farm crisis during the 1980s.
    Chinese tariffs in response to Trump' tariffs on them have compounded the impact of large harvests and have driven down the price of agricultural products putting financial pressure on farmers.

    There are more than two million farms in the US. https://www.statista.com/statistics/...us-since-2000/
    Last edited by Zippyjuan; 11-28-2018 at 01:28 PM.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

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    I am Zippy and I approve of this post. But you don't have to.

  9. #8
    Quote Originally Posted by Zippyjuan View Post
    https://thehill.com/policy/finance/4...new-fed-report

    Report only considered a few states.





    Chinese tariffs in response to Trump' tariffs on them have compounded the impact of large harvests and have driven down the price of agricultural products putting financial pressure on farmers.

    There are more than two million farms in the US. https://www.statista.com/statistics/...us-since-2000/
    Prices are not plunging, they are entirely typical, what little effect the trade war has had doesn't even come close to compensating for the corporate welfare BigAg gets.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment



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  11. #9
    Quote Originally Posted by Swordsmyth View Post
    Prices are not plunging, they are entirely typical, what little effect the trade war has had doesn't even come close to compensating for the corporate welfare BigAg gets.
    https://www.troyrecord.com/news/agri...592573847.html

    Agricultural report: Low prices, rising costs hurt farms

    SARATOGA SPRINGS, N.Y. >> A mid-year agricultural report says net farm income is expected to drop below 2016 levels this fall, primarily resulting from weak commodity prices.

    The main culprit is continued low prices for the milk farms produce, along with weak prices for grains and oilseeds. The greenhouse industry, plus sales of fruits and vegetables are expected to fare better, but are outweighed by commodity declines.

    Findings are contained in the report “Northeast Farm Economy — Mid-Year Update,” by Connecticut-based Farm Credit East.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  12. #10
    Quote Originally Posted by angelatc View Post
    Looks like soy beans are off their record highs, but better than they were.
    ...
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  13. #11
    Quote Originally Posted by Swordsmyth View Post
    ...
    Thank you for sharing a longer term look. About lowest prices in ten years.

    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  14. #12
    Quote Originally Posted by Zippyjuan View Post
    Thank you for sharing a longer term look. About lowest prices in ten years.
    Which aren't much different than prices 2-3 years ago.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  15. #13
    Quote Originally Posted by Zippyjuan View Post
    Thank you for sharing a longer term look. About lowest prices in ten years.

    [IMG]m_household_income.JPG[/IMG]
    Not much different than 2-3 years ago, before the tariffs, though. Interest rate increases track closer to this than tariffs do.
    * Enforce Border Security – America should be guarding her own borders and enforcing her own laws instead of policing the world and implementing UN mandates.

    * No Amnesty - The Obama Administration’s endorsement of so-called “Comprehensive Immigration Reform,” granting amnesty to millions of illegal immigrants, will only encourage more law-breaking.

    * Abolish the Welfare State – Taxpayers cannot continue to pay the high costs to sustain this powerful incentive for illegal immigration. As Milton Friedman famously said, you can’t have open borders and a welfare state.

    * End Birthright Citizenship – As long as illegal immigrants know their children born here will be granted U.S. citizenship, we’ll never be able to control our immigration problem.




    Reprinted from http://www.ronpaul2012.com/the-issues/immigration/ [Nov. 29, 2011]

  16. #14
    Quote Originally Posted by angelatc View Post
    Not much different than 2-3 years ago, before the tariffs, though. Interest rate increases track closer to this than tariffs do.
    For some reason in the upper midwest people still finance land and equipment on a large scale which is much more risky than what is considered normal practice around here . I would be surprised if there were numbers like this for Indiana , Kentucky , Iowa . Those dairy farms also probably hire help out that was once done primarily by family adding costs . I would imagine many of these bankruptcies are corporations that over extended . Tariffs have nothing to do with it I would guess .
    Do something Danke

  17. #15
    Quote Originally Posted by Danke View Post
    Farm Aid II!
    I was hoping you would offer to help with my bar tab .
    Do something Danke

  18. #16





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  20. #17
    Quote Originally Posted by oyarde View Post
    I was hoping you would offer to help with my bar tab .
    I'm wealthy, but I don't have that kinda money.
    Quote Originally Posted by Zippyjuan View Post
    Ron Paul know some weird people...



    Quiz: Test Your "Income" Tax IQ!


    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  21. #18
    Quote Originally Posted by Danke View Post
    I'm wealthy, but I don't have that kinda money.
    I cut back a little when I became a senior citizen .
    Do something Danke

  22. #19
    Quote Originally Posted by oyarde View Post
    Tariffs have nothing to do with it I would guess .

    The main effect tariffs are having is having previous markets closed to them as China isn't alone with the Ag "tit for tat". Losing those markets combined with higher than normal crop yields (which caused slightly lower prices. Of course, a $2 dollar decline per bushel with an average yield of 171 bushels this year per acre adds up fast when you start looking at these farms who yield 100k+ bushels then you're talking $30k to $40k in losses) is what's hurting them as far as that goes. Higher rates on top of that is what's really hurting them.

    Basically, both sides are right.
    "Self conquest is the greatest of all victories." - Plato



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