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The Average U.S. Farm Is $1,300,000 In Debt, And Now The Worst Farming Crisis In Modern History Is Upon Us

Michael Snyder
August 13th, 2019
The End Of The American Dream
Comments (32) Read by 1,633 people

This article was originally published by Michael Snyder at The End of the American Dream. 

We haven’t seen anything like this since the Great Depression of the 1930s.  Leading up to this year, farm incomes had been trending lower for most of the past decade, and meanwhile, farm debt levels have been absolutely exploding.

So U.S. farmers were desperate for a really good year, but instead, 2019 has been a total disaster.  As I have been carefully documenting, due to endless rain and catastrophic flooding millions of acres of prime farmland didn’t get planted at all this year, and the yields on tens of millions of other acres are expected to be way, way below normal.  As a result, we are facing the worst farming crisis in modern American history, and this comes at a time when U.S. farms are drowning in more debt than ever before.  In fact, the latest numbers that we have shown that the average U.S. farm is 1.3 million dollars in debt

Debt-to-asset ratios are seeing the same squeeze, with more farms moving into a ratio exceeding 80%. Barrett notes each year since 2009 has seen an increase in the average amount of total debt among farmers, and 2017 was no exception. Average debt rose 10% to $1.3 million. The biggest increase was in long-term debt, such as land.

Farming in the 21st century has become an extraordinarily risky business, and countless U.S. farmers were already on the verge of going under even before we got to 2019.

Now that this year has been such a complete and utter disaster, many farms will not be able to operate once we get to 2020.

Minnesota farmers Liz and Bob Krocak were hoping for better days ahead as this year began, but things have been really tough and their debts have become overwhelming.  During a recent meeting with their creditors, Liz was so distraught that she literally burst into tears

They had to face their creditors at a mediation. There was Del, the mechanic, whom they owe $28,000 and who now can’t help his son buy a home. There was Steve, the feed store guy, who is 64 and has delayed his retirement because of the Krocaks’ $311,000 bill.

Liz recalled the mediator opening the meeting by saying, “This is going to be an emotional day. I can see everybody really likes this family.” Liz had burst into tears then – and she was crying again now, describing the scene seven months later.

“We just hope there’s a farm left at the end of it,” she said.

In total, the Krocaks just happens to be 1.3 million dollars in debt.

At this point, there isn’t a prayer that all of that debt will ever be paid off.  All they can really hope for is more patience from their creditors because without it the farm is going under.

The Krocaks recently received a check for about 12,000 dollars from the federal government, and they are very grateful for the money, but the truth is that it isn’t even going to make a dent in their 1.3 million dollar debt.

If the horrific weather and endless flooding wasn’t enough, about a week ago the Chinese government announced that they would be ending all “purchases of U.S. agricultural products”, and that was a devastating blow for farmers all over the nation.

In particular, soybean farmers are going to see demand for their crops absolutely collapse.  In recent years, China has purchased approximately 60 percent of all U.S. soybean exports.

And even if a trade deal is eventually reached, it is unlikely that all of that demand is ever going to come back.  Right now, the Chinese are spending enormous amounts of money “to build transportation infrastructure to ship soybeans grown in what used to be rain forests” in Brazil.  They aren’t going to abandon all of that just because Trump suddenly changes his mind.

And the truth is that it is extremely unlikely that Trump will change his mind and cave in to the Chinese.

So for the foreseeable future, U.S. farmers are going to be facing weaker markets and lower prices, and that is going to be the final straw for many of them.

Have you ever been at a point in your life where you have endured problem after problem and then one day a final crushing blow comes along that takes away the last shred of hope that you were holding on to?  That is precisely what has happened to farmers like Bob Kuylen of North Dakota

“It’s really, really getting bad out here,” said Bob Kuylen, who’s farmed for 35 years in North Dakota.

“Trump is ruining our markets. No one is buying our product no more, and we have no markets no more.”

We keep hearing about “government bailouts”, but they aren’t going to be nearly big enough for most farmers.  Kuylen has worked as hard as he possibly could, but he was not able to overcome the challenges he was facing, and now he is facing financial disaster.  He would walk away, but he says he can’t because “I’ve invested everything I have in farming”

Kuylen, who farms roughly 1,500 acres of wheat and sunflowers, lost $70 per acre this year, despite growing good crops. Current government subsidies only cover about $15 per acre, he said.

“There’s no incentive to keep farming, except that I’ve invested everything I have in farming, and it’s hard to walk away,” he said.

It would be nice to think that all of these farmers will somehow bounce back next year, but that isn’t likely.  It is very doubtful that there will be any sort of a trade agreement with China before the 2020 presidential election, and global weather patterns are not going to be getting any more stable.  Sadly, it is entirely possible that next year could be even tougher for U.S. farmers than this year was.

So please say a prayer for our farmers.  They grow the food that we all eat on a daily basis, and their hard work is rarely recognized on a national basis. They are unsung heroes, and right now most of them are really, really hurting.

 Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now!: Why A Great Crisis Is Coming & How You Can Survive It.

Preparedness is multi-faceted and is best accomplished with a clear purpose in mind. Michael Snyder offers sound economic reasons to prepare while addressing the struggles that many Christians face regarding preparedness. His advice will comfort and uplift the reader, offering peace of mind that preparedness brings during uncertain times.

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Author: Michael Snyder
Views: Read by 1,633 people
Date: August 13th, 2019
Website: http://endoftheamericandream.com

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32 Comments...

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  1. Genius says:

    That sucks for small farmers but maybe Monsanto will bail out the big corp. farmers! Oh wait, their busy paying off the thousands of lawsuits, nevermind. Fookin’ short sighted sodbusters, grow something non toxic that doesn’t turn you into a fag. Grow pot, Grow organics, Grow herbs, Grow something besides your poisoned shit that no one wants (with half a brain). Soy? Eat shit and die! When I see anything with the label non gmo/organic that’s what I buy! Oh but it costs a buck more… too bad fat asses, you might save a lot more on doctor bills and drugs for your conditions….

      • Pelican says:

        Y’all sound like a bunch of tree hungi g lefties. Can’t blame you. The mega one crop farms are not sustainable. Cali produces 80% of the organic food in the USA. The rest of the country is producing poison labeled as food.

    • durangokidd says:

      Cry me a fucking river !!! Are we going to bailout every failing business in America ??? What’s next Cabbies in NYC because they are committing suicide in large numbers because consumers are choosing to use Uber or Lyft to avoid the financial rape by calling a cab ???

      Business is about RISK & REWARD.

      Factually, multi-million dollar corporate farmers are subsidized as much as fucking bankers. Why soooo much debt ??? Because interest rates have never been lower and credit easier. These are not, in the majority, small family farmers eking out a living for their families and taking the excess crop to sell at the local Farmer’s Market. These are multi-million dollar corporate farmers who know they can depend upon the government to stick the American Taxpayer with the tab for their bad luck or incompetence !!!

      If you can’t manage the risk in your business …. any business …. you deserve to go broke. When the government bailed out the banks they should have confiscated the equity (stock) when they nationalized the bankers debt; then resold it too new investors to recapitalize the banks.

      Farmers will line up with their fucking hand out and reap HUNDREDS of BILLIONS of DOLLARS in subsidies paid for by the American taxpayer. The only better, easier business to be in, in America, is ranching: grazing your beef on taxpayer land for a fucking song !!! Don’t believe me, ask Rancher Bundy !!!

      Cry me a fucking river. Farmers going broke because they can’t properly manage their businesses are not my financial problem.

      By crop insurance you multi-million dollar fucking DEADBEATS !!! You are parasites on American Taxpayers !!! 🙂

    • durangokidd says:

      “Kuylen, who farms roughly 1,500 acres of wheat and sunflowers, lost $70 per acre this year, despite growing good crops. ”

      That land is probably worth AT LEAST $3,000 per acre, maybe $5,000. Sell it. Get out of the business of farming and retire.

      Anyone here here besides me have a net worth over $5 million that they could retire on ??? Why continue to subsidize the wealthy when half of ALL Americans make less than $36,000 before taxes ???

      Fuck the farmers. Grow your own !!! Their business model is NOT sustainable anyway. The sooner that business model is retired the better the American Taxpayer will be !!! 🙂

      • durangokidd says:

        The Kuylens are $1.5 million in debt. The land is worth at LEAST $3,000 per acre. That’s a land value of $ 4,500,000 for 1500 acres. That does not include the house or farm equipment.

        Do yourself a favor. You are not a good farmer; at least not a good businessman in farming. Liquidate. You still have a net worth of :

        THREE MILLION DOLLARS !!!

        I have no sympathy. Many Millions of Americans have suffered under the policies of the New World Order for decades; primarily boomers. This is no different. Families have been destroyed for 30 years. Careers have been eliminated. The American Taxpayer torched. Small businesses leveled.

        Liquidate. Adapt or die. 🙁

    • Anonymous says:

      The government tells most of them what to grow and how they must do it. The USDA research station near here is continuing to “season” its cut hay on the ground. Been about 3 weeks. They consistently put up the worst hay around. The government needs to get out of the farming “business”.

    • Clown World says:

      The producer is subsidized to support the consumer, and vice versa.

      Neither labor nor capital nor buyer nor seller are sustainable, without someone printing money no more valuable than poker chips.

      The fed res raises interest on positive news and lowers interest on negative news.

      Alice in Wonderland – The sailors hornpipe & The caucus race
      youtube.com/watch?v=is7O9f4U990
      He never ever does a thing about the weather, because the weather never does a thing for him.

      This article is like a financial weather report.

      • durangokidd says:

        Yeah, and the consumers in this case are 1.2 billion fucking Chinese !!! Why should my AMERICAN tax dollars subsidize CHINESE CONSUMERS !!!

        More fucking Globalism !!! Let them eat rice !!! 🙂

    • TharSheBlows says:

      This headline is total BS. The Average U.S. Farm Is $1,300,000 In Debt.

      Most farms are family farms been the family for generations, and owe little to no debt. Sure if you count in big-agra and their massive budgets sure, or do nothing but export grain to China, too bad for you suckers. That’s about as dumb as saying every American owes $150,000 for the national debt. I say nope, its not my debt. Divide the national debt amongst the US Congress Reps as they created the debt. Not my debt.

      This farm crisis is good to shake out the weak big agra players. Most get subsidies to not plant. Its total BS and phony math.

    • John Galt says:

      We had 1929, we had 2008, and now we are entered the engineered “Farmagheddon”. Revisiting the Prussian Revolution history, I can see food as a weapon and the govt taking more care of the cities out of spite and a means of rural/suburban compliance. With massive surveillance surely they will introduce a stain of something that is crop ending so growing your own food would be illegal as it would jeopardize all crops. They will need a reason to make “victory gardens” illegal. No debt, arable land and crops make a slave a free person and govts hate a free person.

  2. rellik says:

    Sad that these people are going broke. Their business model was based on exporting to un-ethical socialist countries. That is a gamble. Federal regulations strangle the farmer and then the world politics bury them.
    Even if tariffs weren’t a problem, the Chinese were going to go to Brazil for soybeans, because Brazil doesn’t have Democrats choking the system. Brazil has people that want to do business, not “save the Earth” at any cost.
    American farmers need to change their business models.
    We need to change our government, to allow farmers to prosper.
    What Farmers don’t realize is that their biggest threat is Democrat cities. The same cities they feed. Most of us are smart enough to kill Rabid animals.
    Aloha.

    • Genius says:

      Well mowing down the rainforest for soybeans to feed the overpopulation of humans is pretty damaging to the global environment. The future is getting worse by the day. China and several other countries need to implement a 1 child policy if there is going to be any chance of decent living in the next 50-100 years. Fools that think this is a bad idea need to go live in China for a while and then think about if they want US to be like that. There is hardly anywhere you can buy land and not have a shitload of fookin’ people around you (unless your uber rich). When I pass from here I will look back and say “I told you so idiots”.

  3. rellik says:

    Gen,
    I agree with the rain forest thing. But it is hard to convince a poor man that those natural resources he owns is more valuable in some future ways than the money offered for them today, when the kids are hungry.
    You know the “give a man a fish vs teach him how to fish” meme?
    Off subject since my last one got lost.
    I’m going to use Unistrut to secure my shed mounted solar panels. Your thoughts? Those fancy roof mounts are pretty
    but cost 50% of my total panel cost!
    Prepers want to know.

    • Genius says:

      Ya unistrut is pricey! Look into unirac rail system. I have used it a lot and it might be cheaper too. If your not too picky or code will let you, use renogy Z mounts. Cost about 11 bux per panel but more work. With Z mounts you have 4 mounts per panel screwed into the studs so they are tough as hell. I use 3 inch stainless lag bolts to attach them (pre drilled holes filled with silicone). Thats the cheapest good mount I know of. Snap a chaulk line on your studs and drill your holes accordingly. Good luck, Aroha lol.

      • Genius says:

        BTW, ebay has all that stuff cheap. Lag bolts too.

      • rellik says:

        Gen,
        My Unirac BOM came out to $2800 before shipping.
        This technique is about $500 locally available from
        Home Depot. Comments?

        ht tps://www.youtube.com/watch?v=Z4cOea0ZCaQ

        I’m building a 70’X12′ open shed. I can use the storage,
        Ag uses, and protection for my “herd”. I’m putting up 44 ea 60 cell panels, on its roof so this isn’t a small project.
        Design is for force 3 hurricane
        and local code Earthquake.
        My total budget is $20,000
        for a 10.6 kW off grid system.
        Considering I’m in Hawaii that is cheap.
        I’m on track to hit that number.
        If I go over I’ll have to rob a 7-11
        at some point in the future. /s
        Thanks for your inputs!
        hopefully lurking readers enjoy
        and learn more about Solar.

        I

        • Genius says:

          relik, watched the vid and ya that would work very well. I use the type crimpers he uses and just start by biting the tabs together a little. IDK what unistrut costs nowdays but it is tough stuff. I mostly used it for ground mount in concrete and used unirac unistrut specific bolts. The stuff he used in the vid is probably cheaper. Besides, unistrut will reinforce your roof. Looks like a plan my man! 🙂

          • rellik says:

            Due to SHTF latencey I did not see your response before my renogy Z mounts response.
            I’ll do the Home Depot Unistrut.
            I get a 10% for disabled Vet discount,
            here so I’ll put in my order, when I order
            the shed materials.
            Thankx!

            • strut says:

              Check with a electrical supply store on the price of strut. It’s a lot cheaper there than the box store. You can get all kinds of brackets and stuff for it also. If you know anyone who works for a electrical contractor they might sell the leftovers from a job at scrap prices. It comes in 10 pieces and if we have a lot that has been cut, at the end of a job it is usually tossed instead of hauling back to shop.

      • rellik says:

        Gen,
        Tried Renogy Z mounts. They didn’t fit.
        Plus my panels are 240 W each.
        Thanks though!

      • TharSheBlows says:

        I used “Iron Ridge” Rails and Fasteners for my Ground mount Solar Array. They work for roof mount as well. Check it out.

        Also look into: Renogy Tilt Mount Brackets

  4. Genius says:

    With the billions of “consumers” growing daily, the need for more and more resources from mines you can see from space to groundwater that is being contaminated by waste and chemicals used to try and support the load. Oceans being used for raw sewage and waste materials and radioactive contamination feeding the dwindling marine life the “consumers” continue to consume at an ever faster pace. Places like lake Mead being sucked dry by the millions of “consumers” as the waste treatment for the millions is drained back into the lake creating a black sludge encroaching ever closer to the intake towers for the masses. Slaughterhouses running full steam to process the animals raised in the most disgusting inhumane conditions imaginable to feed the “consumers”. Out of sight, out of mind as the big wheel keeps grinding the planet to shreds of blood and extinction and waste. The “consumers” show no love whatsoever as they feed their selfish desires and wants. Not until nature or mans greed causes the environment to be so toxic and food so poisionous and scarce will the endless breeding be stopped. Taking the home planet with them, they will perish in a hell of unimaginable proportions……

    • rellik says:

      Gen,
      You are in rare form today!
      All you had to do was say large cities suck!
      I have a donkey, dogs, cats, and chickens
      that wander into my shop looking for attention
      and/or food.
      The soil from my wastes are anaerobically
      broken down in my land.
      My water comes from the sky.
      Soon all my electricity will come from
      the sun independently of society.
      I grow things, mostly weeds, my wife actually
      grows food, more than we can eat.
      You get a different perspective
      outside of a large city.
      I like the idea of everybody getting 40 acres,
      and a 4WD truck to get around.
      I have a bad tempered mule, I would not
      wish on anybody.
      Aloha.

    • John Galt says:

      Odd how the leftist green people want to import a bunch of third worlders here so they can have the american dream. The dream of large lush green yards that eat up water resources, well away from the city for an hour commute in large suv’s. Yup gotta love the lefts sensibilities when it comes to doublespeak.

  5. Clown World says:

    When I talk to farmers about what sells and where, it’s too clear, that the people in these stories have bought into a turnkey or socialist franchise.

    In my region, they get to live in a mansion.

    Apparatchiks tell them how to outsource farm chores as well as free will.

    But, they get to live in a mansion.

    The security gives you a very clear impression of desperados lurking around, after hours, and Grapes of Wrath.

    “So please say a prayer for our farmers. They grow the food that we all eat on a daily basis, and their hard work is rarely recognized on a national basis. They are unsung heroes, and right now most of them are really, really hurting.”

    Like praying for the Roman soldiers in the Christmas play, a redcoat, or the workhouse, afaic. May indies eat, instead.

    • Genius says:

      Or like taking lsd with an idiot… they will drive you insane!

      • Clown World says:

        Roman soldier, redcoat, workhouse, prison labor. They are state interests, in your most boring frame of mind.

        S said, We keep hearing about “government bailouts”, but they aren’t going to be nearly big enough for most farmers.
        C said, “the people in these stories have bought into a turnkey or socialist franchise.”

        So, this is a math problem.

  6. Rooster says:

    Let’s see now, they are 3 mil in the hole and own a farm worth 10 mil, plus equipment and other assets. They grow wheat and sunflowers which have been unprofitable for years, wth??? Diversify! Grow something else, change your ways, you might have to get out of your dogged routine and go a different route. These people who are bull headed in their cropping systems and knowingly plant unprofitable crops year after year and run up huge debt, then cry and whine and complain when the piper comes calling and there is no bailout simply amaze me. No sympathy.

  7. George C says:

    The farmers haven’t yet figured out the storms, floods, blizzards and tornadoes are all custom made to crash the food industry. The Air Force calls it “weather warfare” developed to help destroy our enemies, but can also be used to create a food shortage so the entire country will be dependent on the government for food. Remember,… if you control the food, you control the people, and that is government’s primary objective. (H.A.A.R.P.)

  8. Bert says:

    Another totally full of shit story for the idiotry.

    If so many farms were in trouble and unable to produce a profit, the banks wouldn’t loan the money out in the first place, then there would be millions of farms up for sale and the cost of a farm would become laughably cheap, and land would become unused because why do anything if there is no chance of profiting. THIS ISN’T OCCURRING.

    The truth is, with billion$ in subsidies from the legal citizen working middle class taxpayer [majority white males], the American farmer has never had it so good!!

    Sounds like someone is trying to sell useless seed banks or amazon-links to scared obese pimplefaced lunatic end-dayers.

  9. The socialist in Congress will find the answer from the Bolsheviks. Collectivization of farms and prison farm labor will solve the farm/food problems. (sarc)

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