Farmers whacked again: Trump’s trade wars send farm loan delinquencies to 9-year high

Brazil and Russia have been filling the market with US farmers left in the cold. “Farm communities aren’t easily going to bounce back from this. Even if Trump’s trade wars end tomorrow, the debts incurred during his multiple tantrums will be hanging over farmers for years.”

Trump’s trade wars send farm loan delinquencies to 9-year high

Hunter Daily Kos staff

A farmer in Batavia, Illinois plants corn in his fields 09 May 2007. The surging fuel ethanol industry will use up 27 percent of this year's US corn crop, challenging farmers' ability to satisfy food, feed and fuel demand, the US government said 11 May 2007. A projection of a record 12.46 billion-bushel corn crop will be produced this year, still leaving the demand for corn high as the US Agriculture Department stated stockpiles will run low going into the next crop year when ethanol demand will rise again. AFP PHOTO/JEFF HAYNES (Photo credit should read JEFF HAYNES/AFP/Getty Images)

Elections have consequences. For farmers, the consequences of Trump’s election and subsequent trade wars continue to stack up: Delinquencies on Farm Service Agency direct loans have surged to a nine year high.

“It is beginning to become a serious situation nationwide at least in the grain crops — those that produce corn, soybeans, wheat,” said Allen Featherstone, head of the Department of Agricultural Economics at Kansas State University.

Grain farmers have been the hardest hit, with the shutdown of Chinese markets in retaliation for new Trump tariffs resulting in a glut of unsellable product. While the Trump administration has attempted to lessen the blow to the tune of billions in hastily arranged subsidies, farm bankruptcies in the Midwest are skyrocketing as prices for soybeans and other products plummet. The government shutdown hit agricultural communities especially hard as well, causing delays of both vital government reports and vital government loans.

Farm communities aren’t easily going to bounce back from this. Even if Trump’s trade wars end tomorrow, the debts incurred during his multiple tantrums will be hanging over farmers for years.

COMMENTS:

Not sure if it’s related, but China used the soybeans it purchased from the U.S. to feed livestock.  Maybe there is a varietal difference in soy beans used for livestock vs. human consumers?

BTW, this is also one reason why that market is gone for good.  Not only are the Chinese now purchasing soybeans from Russia and Brazil, they also started   cultivating fast growing grass crops for livestock feed.

Soy bean farmers have stockpiled their crops in huge open air piles. They refused to waste time and money processing them when there is NO MARKET for them.

Late in the summer there where many film clips of this in action, showing the massive piles just outside of farm silos. It was terribly sad to see, because I knew that was the image of Farm Bankruptcies to come.

You can see it in action in this news story at about 1:10:

I totally agree, but for those who voted for him, watched this idiot gut policies, devastate them and their sector in a dozen different ways, and leave many of them hanging on or totally bankrupt, I am just trying to figure out how they can justify continuing their support.  They have choices.  They can do that, but they also have to deal with the consequences.  It’s not just the commodities market destruction…..it’s the immigration policies that leave farms bereft of the staff they need to operate. And its the gutting of agencies like USDA and the cadre of professional agronomists and plant researchers and technical experts whose expertise and commitment are vital to our economy but rarely appreciated in good times and systematically attacked at the present.  You can get details via Michael Lewis and Vanity Fair from his series of articles on the transition in 2017.

www.vanityfair.com/…

“In many cases [the new appointees] demonstrated little to no experience with federal policy, let alone deep roots in agriculture,” wrote Hopkinson. “Some of those appointees appear to lack the credentials, such as a college degree, required to qualify for higher government salaries.”  What these people had in common, she pointed out, was loyalty to Donald Trump.

Nine months after they’d arrived a man I’d been told was the best informed of all the department’s career employees about the haphazard transition couldn’t tell me how many of these people were still roaming the halls. And what fingerprints they left were characteristically bizarre. They sent certified letters to several senior career civil servants, for instance, telling them they were being reassigned—from jobs they were good at to jobs they knew little about. “Too close to the Obama administration is what people are saying,” noted one U.S.D.A. career staffer. They instructed the staff to stop using the phrase “climate change.” They removed the inspection reports on businesses that abused animals—roadside circuses, puppy mills, research labs—from the department’s Web site. When reporters from National Geographic contacted the U.S.D.A. to ask what was going on with animal-abuse issues, “they told us all of this information was public, except now you had to FOIA it,” said Rachael Bale. “We asked for the files, and they sent us 1,700 completely blacked-out pages.”

Let us pray he doesn’t drag every sector of our economy into a death spiral and/or get us into some nasty global war through stupidity or accident.

You want another chance to freak the f…k out, get a cup of coffee and read Politico’s recent lengthy piece on the early days of the transition in the National Security Council….truly horrifying….people whose only concern was eradicating the “deep state,” and who felt policies and procedures as far as security goes are for idiots.

politi.co/…

In a particularly telling example, one former NSC staffer recalled informing a Trump political appointee that the administration should re-think a proposed executive order because it could undercut efforts to protect human rights. “I said, ‘This could make the president look really bad,’” the former staffer told POLITICO. The political appointee replied: “The president doesn’t care about the things you care about, and the sooner that you know about it, the better.”

A farmer in Batavia, Illinois plants corn in his fields 09 May 2007. The surging fuel ethanol industry will use up 27 percent of this year's US corn crop, challenging farmers' ability to satisfy food, feed and fuel demand, the US government said 11 May 2007. A projection of a record 12.46 billion-bushel corn crop will be produced this year, still leaving the demand for corn high as the US Agriculture Department stated stockpiles will run low going into the next crop year when ethanol demand will rise again. AFP PHOTO/JEFF HAYNES (Photo credit should read JEFF HAYNES/AFP/Getty Images)

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Elections have consequences. For farmers, the consequences of Trump’s election and subsequent trade wars continue to stack up: Delinquencies on Farm Service Agency direct loans have surged to a nine year high.

“It is beginning to become a serious situation nationwide at least in the grain crops — those that produce corn, soybeans, wheat,” said Allen Featherstone, head of the Department of Agricultural Economics at Kansas State University.

Grain farmers have been the hardest hit, with the shutdown of Chinese markets in retaliation for new Trump tariffs resulting in a glut of unsellable product. While the Trump administration has attempted to lessen the blow to the tune of billions in hastily arranged subsidies, farm bankruptcies in the Midwest are skyrocketing as prices for soybeans and other products plummet. The government shutdown hit agricultural communities especially hard as well, causing delays of both vital government reports and vital government loans.

Farm communities aren’t easily going to bounce back from this. Even if Trump’s trade wars end tomorrow, the debts incurred during his multiple tantrums will be hanging over farmers for years.

 

FULL STORY