Trump Trade War Helps Push Farmers Into Record Number Of Bankruptcies

Farm subsidies are up 17% this year even while record numbers of farmers are filing for bankruptcy.

You are cool with socialism for the rich, right?

 

Again, you make a post that reeks of being a troll post.

 

Certainly tariffs have played a role, but it's rising Interest Rates are driving the restructuring. Further, you left out that these are CHAPTER 12 filings, which just means that debt repayment is spread over 3 years.

FEDERAL RESERVE:
After holding interest rates at virtually zero percent for seven years after the Great Recession, the Federal Reserve has been steadily raising interest rates for the past three years. Low interest rates encourage farmers to take on cheap debt, buy farms and expensive farm equipment, and cause farmland prices to rise.

Unfortunately, when national interest rates rise, the payments on much of that debt increase as well:

Jason Frerichs, a 33-year-old rancher from Wilmot — a four-hour drive away — stood up at the town hall to urge Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, to keep rates low.

“Average farmers just like myself will spend $20,000 to $50,000, $60,000 a year strictly in interest just to put our crop in the ground,” Frerichs said.

“Rising interest rates put the family farm model at risk,” Frerichs said. He wrote an op-ed published in MarketWatch in March calling on the Fed to keep farmers in mind.

“Each year I renew an operating line of credit that allows me to pay my landlords upfront for cash rent,” he wrote, and also “to prepay seed, fuel, fertilizer and equipment repairs.”

He wrote about “extremely tight” margins that caused many farmers to operate at a loss last year.

“And it looks very similar this year,” he said.​

https://www.forbes.com/sites/jessec...erican-farms-are-going-bankrupt/#3e08878a65a7

Weird how you left both of those important factors out.

 

It never takes long for any Trumpster to resort to dishonest deflections after they've been called out!

 

Defending bad and self destructive policy by shrugging off it's victims isn't going to help you make any sort of case.

No one wins a trade war.

Maybe in Trump's Archie Bunker world, fools believe that , but there isn't an instance in history where it proved to be true for any longer than a short period of time.

What usually happens is that trade barriers insulate domestic industry from competition and provide it with little or no incentive to innovate or improve their products (they have a captive market). The former Eastern Block countries and socialist India are prime examples. Trump seems to think that is a viable model.

 

As the great mind of Rick Perry once said...................." oooooops"

 

Yeah, yet despite losing to Trump, you guys are still at it. Your willing destruction of US manufacturing in exchange for the Chinese Communists cash funding the Left is what cost you the election.

The Trade Deficit is a SUBTRACTION from GDP.

US GDP grew by $708.2B last year, after subtracting $796B in trade deficit. Without that deficit, our GDP growth would have more than doubled. Everyone but the Leftwing Degrowthers wants that additional growth.

70's sitcom? FOCUS!

We may not be able to eliminate the trade deficit but we sure as hell want to reduce it.

 

Wow, winning.

 

Not really big on long term thinking, are either of you.

I bet you walk out in the winter and go 'what global warming' too?

Need to broaden your focus a little bit.

 

In other words, you were not affected, so why should you care. The American who spends life developing a product only to see a cheap knockoff being offered doesn't get your concern, but farmers show up on your concern radar? Im not buying it.

 

No need to patronize me, my friend. The concept of global warming is not all that difficult to grasp; also, no need to exaggerate its effects either.

Likewise, the effects of a trade war on US farmers will be studied and mitigated.

 

Uh no, god do a little research before commenting, I swear.
Soy beans
2008 $15.80 Obama came in office
2009 $9.50
2010 $10.50
2011 $13.00
2012 $13.50
2013 $13.05
2014 $10.50
2015 $9.00 Obama left office
2016 $9.88
2017 $9.60
2018 $9.80

 

Except most understand getting China in line is the only way this market manipulation ends once and for all. Thank god he's more intelligent then the liberals saying no no don't piss off the Chinese that's raping us every day because we might face short term issues. I swear you guys seem more and more clueless everyday on what is going on here. If your against tariffs great so are we, except it goes both ways. If your for high tariffs on our goods and no tariffs on Chinese goods then your a mental midget that is hurting American.

 

Obama came in to office Jan 2009 and left in Jan. 2017.

 

Sorry about that.

And you are right, though I wonder how much more subsidization will be necessary to save the US Agricultural system over the long term.

 

And he thinks that I need to do more research.

 

delete

 

China has other sources of food

Like Aus

But more importantly is the Chinese practice of buying very large swathes of land around the world in places like Africa, South America and, Australia and then growing thier own crops.

Don’t know what your land ownership laws are like in the USA but if you are not careful those American farms will have absentee Chinese landlords

 

Well they are busy stealing actual property around the world in massive land grabs

 

That was the price Dec 2008 now do you feel stupid that you're arguing about something you know so little about. Do yourself a favor and read post 11, learn something, then come back to the grown up table.

 

Hence one strategy they use to manipulate the markets, it needs to stop

 

No I don’t feel stupid at all.

Dec 2008, Bush was President. You said Obama left office in 2015. That’s just not factual information.

The fact that you are reacting in such a way about a simple correction to your error let’s me know all I need to know.

 

Land is not intellectual property. They do use the money we give them for cheap crap to buy our land. They are very smart.

 

I imagine that the vast majority of these farm boys consistently vote R … which, of course, makes this news all the more HILARIOUS.


Tariff Boy Donnie … turning local farmers into welfare queens since 2017...

 

Sorry put the "Obama left" in the wrong spot but the fact is he came in it was high, he left it was low. Now again as I've said many times, this is NOT a presidential thing that the prices dropped so dramatically during his term, which is an historic fact that you can't refute. Now he didn't ever try to get China to stop manipulating the markets, which is why the OP was pushing a false narrative, fake news. Farmers are in Trumps corner for now because he's the only one trying to get the dang thing fixed, period.