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Thread: Farm Belt bankruptcies are soaring

  1. #1

    Default Farm Belt bankruptcies are soaring

    Farm Belt bankruptcies are soaring

    A wave of bankruptcies is sweeping the U.S. Farm Belt as trade disputes add pain to the low commodity prices that have been grinding down American farmers for years.


    Throughout much of the Midwest, U.S. farmers are filing for chapter 12 bankruptcy protection at levels not seen for at least a decade, a Wall Street Journal review of federal data shows


    https://www.msn.com/en-us/money/mark...j7M?li=BBnbfcN

  2. #2

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    Quote Originally Posted by Silver and Gold View Post
    Farm Belt bankruptcies are soaring

    A wave of bankruptcies is sweeping the U.S. Farm Belt as trade disputes add pain to the low commodity prices that have been grinding down American farmers for years.


    Throughout much of the Midwest, U.S. farmers are filing for chapter 12 bankruptcy protection at levels not seen for at least a decade, a Wall Street Journal review of federal data shows


    https://www.msn.com/en-us/money/mark...j7M?li=BBnbfcN
    Interesting and unfortunate, partly due to the human toll but more so because of how foreseeable and avoidable it was. US farmers were one of the biggest beneficiaries from NAFTA and trade with China. Cut that off and naturally the farmers feel the brunt.
    The answers are in the data

  3. #3

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    Most farmers sell their soul to the implement dealer every year. And around me in central Illinois the land prices are dropping which hurts their borrowing power.
    What's the Frequency, Kenneth?

    432Hz

  4. #4

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    Most farmers around here live a lifestyle few successful business men can pull off, retire with millions in assets, pay very low taxes thanks to all the write offs and take any government handouts they can....the only ones that have a tough time are the ones who over leverage to expand more then they should out of pure greed. I have zero pity for poor poor farmers. Oh and by the way...I farmed for 4 years...never had so much money and paid so little taxes.
    One in a million...GNR ...sums it up nicely

  5. #5

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    Farmers in the USA gamble with the crop insurance every year too. Sometimes they make out very well other times it's just an expense.
    What's the Frequency, Kenneth?

    432Hz

  6. #6

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    Quote Originally Posted by redraspberry View Post
    Farmers in the USA gamble with the crop insurance every year too. Sometimes they make out very well other times it's just an expense.
    Crop insurance up here has different coverage u can get....it's cheap....if you go with a decent coverage you can still pay expenses, make as much as you would if you had a crop and still get those 3-4 holidays a year. As one local farmers said last year to me..."went to Hawaii for a week, got bored, flew to Australia for two weeks and then finished my Hawaii holiday....I spend more on my holiday then many make in a year". Meanwhile working stiffs end up pulling the farmers share of taxes and get no holidays.
    One in a million...GNR ...sums it up nicely

  7. #7

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    Quote Originally Posted by redraspberry View Post
    Farmers in the USA gamble with the crop insurance every year too. Sometimes they make out very well other times it's just an expense.
    Kinda how insurance works...if you don't use it it's a expense....no different then home owners, car, life insurance...all a expense but if you need it, you make out well sometimes
    One in a million...GNR ...sums it up nicely

  8. #8

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    Quote Originally Posted by sasksilver View Post
    Crop insurance up here has different coverage u can get....it's cheap....if you go with a decent coverage you can still pay expenses, make as much as you would if you had a crop and still get those 3-4 holidays a year. As one local farmers said last year to me...went to Hawaii for a week, got bored, flew to Australia for two weeks and then finished my Hawaii holiday....I spend more on my holiday then many make in a year. Meanwhile working stiffs end up pulling the farmers share of taxes and get no holidays.
    I think here is they buy a certain dollar amount for coverage and pay 1/3 up front. If they don't file a claim then that is it. If they do file a claim then they get the claim amount but have to pay the other 2/3s premium.

    There are three kinds of farmers around here for the most part.

    Older family farms that either have to get bigger or die out. These people have millions in collateral so they live on the credit the bank gives every year and pay it off after harvest. But they can absorb the yearly variations in the market. They store a lot of grain on site. Many have livestock or other means of income generated from the farm.

    The smaller farmers who work on what they get all have older equipment and smaller acreage. But they are not in debt and can also usually weather out the market. They generally have some livestock and store smaller amounts on site.

    Then there is the 'carpetbagger' farmer who do not live in the area. Usually from a larger urban area and has sold their land and need to invest his money. They buy up huge tracts of unconnected land. Then they rent equipment to plant and harvest. So they have to pay for the equipment to be hauled around from field to field. have to pay to have the crop hauled way and no self storage.
    What's the Frequency, Kenneth?

    432Hz

  9. #9

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    Quote Originally Posted by redraspberry View Post
    I think here is they buy a certain dollar amount for coverage and pay 1/3 up front. If they don't file a claim then that is it. If they do file a claim then they get the claim amount but have to pay the other 2/3s premium.

    There are three kinds of farmers around here for the most part.

    Older family farms that either have to get bigger or die out. These people have millions in collateral so they live on the credit the bank gives every year and pay it off after harvest. But they can absorb the yearly variations in the market. They store a lot of grain on site. Many have livestock or other means of income generated from the farm.

    The smaller farmers who work on what they get all have older equipment and smaller acreage. But they are not in debt and can also usually weather out the market. They generally have some livestock and store smaller amounts on site.

    Then there is the 'carpetbagger' farmer who do not live in the area. Usually from a larger urban area and has sold their land and need to invest his money. They buy up huge tracts of unconnected land. Then they rent equipment to plant and harvest. So they have to pay for the equipment to be hauled around from field to field. have to pay to have the crop hauled way and no self storage.
    Don't fool yourslf, the older family farms don't have to get bigger...they do it out of greed. Most of these family farms are not owned by the bank, and have more net worth then most will ever accomplish. Take my mom and dad for instance, small family farm...dad retired at 38 to live out his lifelong dream of being a raging alcoholic mom worked hobby minimum wage jobs. Dad lived to be 59...20 years of hanging out at bars drinking and gambling....after all that we still have the same land base as we started with...mom's net worth is near 2 million. We are likely one of the smaller land owners in our area...a drop in the bucket. How many city people are worth 2 million in the end? People have to stop this narrative of the poor poor farmers...you are being fleeced.
    One in a million...GNR ...sums it up nicely

  10. #10

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    I would say around me a large farm is ~1000 to 2000 acres. Some corporate farms are bigger. Smaller farms under 1000 acres. I would bet Saskatchewan has much bigger farms?
    What's the Frequency, Kenneth?

    432Hz

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