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U.S. Farm Debt SOARS To Apocalyptic Levels Not Seen Since The 1980’s Farm CRISIS

Mac Slavo
March 4th, 2019
SHTFplan.com
Comments (26) Read by 2,625 people

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Farmers in the United States are currently burdened by levels of debt not seen since the farm crisis of the 1980s.  This terrifying strain on our nation’s food providers could ultimately have a horrific and possibly apocalyptic effect on the already strained food supply.

The rapid increase in debt held by Americans is a common theme in recent economic discussions.  While the mainstream media largely ignores the massive debt overload of both the government, corporations, and individuals, many others can read between the lines.  Once the defaults start, they will cause an exponential ripple effect that could take down the entire economy, and our food supply. 

Food Crisis In The Making: Farm Bankruptcies Reach Horrifying Levels

Not only is farming a demanding job (physically and attempting to comply with increasing government regulations while staying afloat) but it’s financially taxing.  And farmers are covering their losses by using debt: borrowed money, that many won’t be able to ever repay. According to Reuters, this debt is disastrous because it will eventually affect our food supply. The amount of debt held by America’s farmers has risen rapidly to 1980s-levels to $409 billion from $385 billion last year. Loan demand is remaining “historically high,” U.S. Agriculture Secretary Sonny Perdue said on Wednesday.

“Farm debt has been rising more rapidly over the last five years, increasing by 30 percent since 2013 – up from $315 billion to $409 billion, according to USDA data, and up from $385 billion in just the last year – to levels seen in the 1980s,” Perdue said in his testimony to the House Agriculture Committee.   “Relatively firm land values have kept farmer debt-to-asset levels low by historical standards at 13.5 percent, and continued low interest rates have kept the cost of borrowing relatively affordable.” But that doesn’t mean farmers won’t have issues repaying the massive debts they have incurred.

Further reporting by Reuters claims that the debt figures reflect a level of strain on the U.S. farm belt that is comparable to the agricultural crisis of three decades ago. However, this time, the debt burden is driven by lingering weakness in commodity prices, storms damaging crops, and loss of key export markets such as China due to President Donald Trump’s trade disputes. Of course, that’s part of the problem, but the media conveniently leaves out any kind of fault of the government. Government regulations and price fixing of agricultural products (food) make it difficult for farmers to make any kind of profit, and if they do, they are heavily taxed like the rest of us. In the 1980s, thousands of farm operations financially collapsed after producers dealing with government-mandated low crop prices fell behind on high-interest land and equipment loans.

The Trump administration has agreed to give up to $12 billion in aid for farmers to offset their losses from the unnecessary and disastrous trade fights and tariffs. Perdue said more than $8 billion has already been paid out as a part of those programs to date. USDA has also made it clear that there will not be an aid package for 2019.

Farm incomes and agrarian credit conditions continued to erode in the second half of 2018 and as for bankers, one key concern has been the amount of farmland that could come up for sale in the coming months and whether that could trigger an across-the-board drop in land prices, bumping up the debt to asset ratio. “I get more phone calls from bankers these days than farmers,” Austin Scott, Congressman from Georgia, said at the hearing.

SURVIVE ANYTHING! Chapter 2: Food Crisis

 

“If we have learned one thing studying the history of disasters, it is this: those who are prepared have a better chance at survival than those who are not.” –Tess Pennington, The Prepper’s Blueprint

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Author: Mac Slavo
Views: Read by 2,625 people
Date: March 4th, 2019
Website: www.SHTFplan.com

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26 Comments...

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  1. Menzoberranzan says:

    By design.

    • durangokidd says:

      EXACTLY !!!

      “And farmers are covering their losses by using debt: borrowed money, that many won’t be able to ever repay.”

      This is the direct result of socialism for Farmers: they are subsidized to produce too much product which creates an oversupply in the market, resulting in lower prices; needing more product to meet costs, resulting in a vicious circle of higher production & lower prices until the market for their product collapses and they are bankrupt: allowing MEGA MULTINATIONAL CORPORATIONS to step in and buy up the ground for $.10 on the dollar. It happens at the end of every business cycle and I have pointed that out to this community several times before.

      This is the process by which the rich get richer and wealth disparity increases between the haves and have nots. Yeah, it’s in the archives. Cash is King. 🙂

      • Mountain Trekker says:

        Socialism for Farmers, Kidd you got that right nobody is a bigger welfare recipient than Farmers, they work like hell for a month in the spring during planting time and work like hell for a month in the fall during harvest and bitch like hell the other ten months of the year. They spend their off time figuring out all the Government programs. Small farmers have been crowded out years ago, if you don’t farm a couple of thousand acres now adays you ain’t farming. I know where of what I speak. Trekker Out.

      • The Preacher says:

        re “Cash is King”

        Try eating that “cash” when there’s NO food to buy – you dumb fck.

      • Unknown says:

        Or….maybe they are incentivized to over produce and get subsidies so in times of natural crisis we habe over suplly vs being short…..not always doom and gloom….

      • I live in southeast Minnesota some of the large corn and soybean farmers are living like kings with government money, dairy farmers are going broke and selling out.

    • Unkown says:

      Or……maybe they see these low rates as near free money to sustain them decades……not all doom and gloom.

  2. Seminole Wind says:

    Without Farmers and Truck Drivers most of America would starve to death within weeks.

    New Commie mantra by the Red Media , “If not elected in 2020 President Trump will start Civil War 2” . Could be if the same cheating tactics we saw here in Florida happens in all 50 states.
    Plus many of us believe that we are already in CW2.

  3. Anonymous says:

    Farmers debt? That’s a little narrow minded. It’s everywhere.

    A healthy system would have prices fall on grain with a glut, but the debt load everywhere can’t handle a decrease in prices.

    More debt has to be created today to pay off yesterday’s debt with interest. Tomorrow, repeat for today.

    I do not like the government throwing around people’s currency all willie nilly, BUT
    As opposed to $12 billion in relief to farmers, how about buying up some excess for the gutted grain reserves just in case the average Joe, in case of emergency, can have a GMO, glyphosate laced loaf of bread to go with the lead paint chips he’ll be eating.

  4. repr sleepr says:

    Well I guess the chi-coms will be taking their place and growing food to ship over to the homeland. They’ve bought a few chicken processing plants over here on the Delmarva Pennisula. They also purchased Smithfield Meats. I paid damn near 50 bucks for a country ham about two months ago. I always buy one and cut it in half on the band saw, cook it and slice a half up to take down to Tennessee when I go visit the old folks. The country hams were hard to find this time. Usually I don’t buy the Smithfields and get the Sun Hams but couldn’t find any.

  5. NJ Tax Pro says:

    Still have a long way to go to catch up with the student debt of $1.5 trillion…never mind auto debt, credit card debt, home mortgage debt, federal and state debt, corporate debt for buybacks. DEBT DEBT DEBT.

  6. Lessons to learn from the Amish. They don’t go into debt.

    • Johnny Paytoilet says:

      You should check out their farms down here in South Central Ohio. They are huge, well taken care of & highly productive. They sell the surpluses dirt cheap (no pun intended) to us country folk. Mighty good eatin’ I might add!

  7. ANGRY FROG says:

    Looks like it will be Government Farms like FEMA type Camps soon.
    Just like Doctors, and the Medical Profession everything socialized coming to your theaters sheep.

  8. Dave says:

    Yes, overall debt is going to crash the whole deal. Hope you have a good rifle.

  9. Anonymous says:

    Many farmers rely on some form of getting advanced credit to grow their crops. Selling future options is one way and straight borrowing is another. No credit means no crops. Being deep in debt means higher borrowing rates. Add the debt problem in with shrinking aquifers and the advanced age of many farmers. Usually agricultural produce is one of the most dependable part of the economy but it has serious problems.

  10. THe Preacher says:

    The “idea” is to close down thr farms and starve you into submission.

    Got it?

  11. Asshat says:

    When farmers can’t get credit anymore there will be a food supply crisis. This is why we are growing our own food. you can only rely on yourself

  12. Old Guy says:

    So Im supposed to worry about or feel sorry for some agribusiness that got too big for their britches and bought too much debt. and cant get a increase on the already exorbant government welfare they are already receiving. Guess what 1980 was a severe drought. and many farmers went bust. and Guess what the land they farmed was still planted & harvested in 1981. I will worry when I don’t see any Rice ,soybeans , corn ,Wheat or other commody grains planted in the Arkansas Delta.

  13. george aregers says:

    you all missed the point—-Donald Trump and his idea of sanction China is the root cause Americans are stupid to have this conman idiot as president.

    • Hardrock says:

      You are a idiot George! Don’t put Trump voters into your uneducated class? Get out of your parents basement, get a job and off food stamps and try to be productive. Or get back on your meds and just STFU?

  14. Tedx says:

    I know! Stop growing GMO crops that everyone is trying to keep out of their diet.
    As hard as it is for Russia to do agriculture due to Global Cooling, they are the largest exporter of GMO-free grains in the world. Of course, they don’t fluoridate their water, so their citizens win Chess matches, as well.

  15. Traitor Hator says:

    If I can sell you GMO seeds that give you a big crop this year, I can sell you GMO seeds next year that will bankrupt you, and force you to sell out cheap?

  16. PJ London says:

    So the farm debt increased by less than 7%!
    A couple of poor rains and China not buying (thanks Donald) is now a catastrophe?
    AMD alone has Assets – Liabilities of $50 billion or twice the increase.

  17. Wait until the food shortages come.and they will and we will see if you still bitch about our farmers. were one failed crop away from starvation.A farmer buys retail sells at wholesale and pays the freight both ways. A farmer is the only one punished for doing a good job.Our food supply is a blessing not a curse. Read about the grand solar minium which is coming. no such thing as global warming all lies. Starvation will be coming soon

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