Trade Wars-Farmers Facing Billions Of Dollars Of Debt

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Trade Wars

Trade WarsAmerican Farmers Becoming More And More Desperate By The Day

Farmers have been dealt severe financial blows since 2013, the current administration is not yet painting a rosy picture. The estimates put farmer’s debt at a staggering 437 billion dollars this year alone. President Donald Trump’s trade wars, offers no end in sight. The escalating financial issues are jostling farmers into financial hardships of epidemic proportions.

The farmers escalating financial woes did not start with the current administration, Trump officials are quick to point out. This is the highest amount of debt for American farmers since the farming catastrophe of the 1980’s. Farmers are defaulting on loans in record numbers with 2019 setting a new record. The first four months of this year, saw failure to repay loans at the highest level since 2012.

President Trump Tells Farmers Their Financial Woes Will Be A Thing Of The Past

Donald Trump who launched his re-election campaign shortly after taking office, appeared in Iowa this month. He told assembled Iowa farmers, that the current farming crisis, was the fault of the the former President. He didn’t say Obama’s name, but he said that the issues facing farmers started to really intensify during the last administration. Trump said the former administration never even addressed the issues, let alone offered any solutions.

The President has imposed sanctions on Mexico and China, causing competing tariffs to further escalate the farming financial hardships. Farmers told Trump officials on the ground in Iowa, that the ‘trade battles’ are now at the heart of their problems. Many said they were afraid that they will no longer be able to stay in business. On top of the tariffs taking huge chunks out of the farming profits. The record rain and flooding are all adding nails to the proverbial coffin.

Farmers Weigh In On Their Future In The Farming Industry

One of the assembled farmers in Iowa earlier this month was Grant Kimberly. He is a local corn and soybean farmer. He said lots of farmers are blazing through any equity they have merely to stay afloat. This he says, is plunging farmers further and further into debt with no end in sight. He said some farmers are putting off badly needed repairs on their farming equipment, or putting off new purchases all together.

Kimberly points out, that these are issues, these are not luxury items, ‘They are items farmers need to stay in business.’ Kimberly said people are digging into their other investments just to stay in business. Many are asking themselves how many more hits they can possibly survive. He rattled off all the tragedies farmers have had to endure of late. He mentioned, ‘African swine fever, extreme weather, trade wars.’ He bemoaned’ it’s unprecedented, and nothing like it has surfaced since the 80’s.’ The financial devastation that farmers are dealing with are not reflective in the overall economy. Banks are making record setting profits, which adds salt to the wounds of farmers.

Reference

Politico.com