A similar situation with the bankruptcy of American agricultural producers has not been observed since the economic crisis of 2008. For losses, farmers ‘ debts are now estimated at $ 409 billion.
Among the main reasons are the decline in commodity prices in international markets, high competition between Russia and Brazil and Donald trump’s trade disputes with China and the EU.
Thus, in the seventh circuit court of appeals, which serves the States of Illinois, Indiana and Wisconsin, during 2018, more farmers declared bankrupt than during the recession of 2008. In North Dakota and Arkansas, the level of bankruptcy of farms increased by 96%.
In the tenth district, which includes the States of Kansas, Colorado and Oklahoma, bankruptcy among farmers increased by 59% over the past year. In 2017, farms from these three States sold 50% of all agricultural products.
The average size of loans to farms across the country in the fourth quarter amounted to 74.19 thousand dollars. This is the highest figure in recent years.
The administration of the us President introduces a number of Federal projects to support agricultural producers. For example, one of the largest Apple-producing companies Washington Apple Commission, the US government compensates 8.5 million dollars. The funds will be allocated under the agricultural trade facilitation program, which is implemented by the us Department of agriculture. However, officials say that such measures are only a short-term solution that will not give a systemic result.