Farm bankruptcies are surging as Trump's trade war drags on
Business Insider
Published Nov 28, 2018 06:00AM ET
Updated Nov 28, 2018 09:30AM ET
- At least 84 farms in the upper Midwest filed for Chapter 12 bankruptcy in the year ending in June, according to a new Minneapolis Federal Reserve analysis.
- That's more than twice the level seen over the same period four years ago.
- Tariffs have added pressure to already low margins for farmers.
As President Donald Trump maintains protectionist policies with global trading partners, an increasing number of farms in the Midwest are struggling to stay afloat.
At least 84 farm operations in Minnesota, Montana, North and South Dakota, and parts of northwestern Wisconsin filed for bankruptcy in the 12 months ending in June, according to a new analysis from the Minneapolis Federal Reserve, more than twice the level seen over the same period in 2014.
The strain of low commodity prices on farmers and ranchers has been compounded by tariffs, Ron Wirtz, regional director for the central bank, said in the report. Trump has placed tariffs on more than $300 billion worth of imports to date and threatened his policies could further escalate on multiple fronts.
As countries retaliate against the Trump administration with duties on American goods, key commodity prices have fallen sharply. on negotiations in recent days.
Lack of optimism for a resolution has weighed on farmers’ outlooks for the rest of the year and beyond. In Missouri and Nebraska, more than 70% of survey respondents anticipated incomes would continue to fall throughout the next three months.
"I would say we're on the start of something and not the end of something," McNew said. "There's just nothing on the horizon that really suggests things are going to get better."
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Written By: Business Insider
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