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U.S. Farms Are Facing Their Worst Crisis In A Generation – And Now Here Comes Another Monster Storm
U.S. Farms Are Facing Their Worst Crisis In A Generation – And Now Here Comes Another Monster Storm
The combination of the wettest planting season in U.S. history, a catastrophic trade war with China and economic conditions that are brutal for small farms has produced a “perfect storm” for U.S. farmers. Farm bankruptcies have already risen to the highest level in 7 years, but many expect that they will soon surge to all-time record highs. Due to the incredibly wet weather, millions upon millions of acres of prime U.S. farmland will not be planted with crops at all this year. And millions of acres that do get planted will yield a lot less than usual because of the wretched conditions. Meanwhile, the U.S. will export far less corn and soybeans than usual this year due to our trade conflicts with China and Mexico. With much less international demand, U.S. farmers are going to have an increasingly difficult time trying to make a profit on anything they are able to grow. In the end, thousands of farmers will not be able to recover from this crisis and will be forced out of the industry for good.
According to USA Today, “a near biblical parade of misfortune” has created “the worst farm crisis since the 1980s”…
American farmers already plagued by a near biblical parade of misfortune that includes years of low prices and a trade war with China are now grappling with record Midwest rain that will likely prevent a large portion of this year’s crop from even getting planted.
The troubles have created the worst farm crisis since the 1980s, when oversupplies and a U.S. grain embargo against the Soviet Union forced thousands of farmers into bankruptcy, experts say.
So we can definitely say that this is the worst farm crisis in a generation, but the truth is that this crisis is far from over.
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Due To Cataclysmic Flooding, Millions Upon Millions Of Acres Of U.S. Farmland Will Not Be Planted With Crops This Year
Due To Cataclysmic Flooding, Millions Upon Millions Of Acres Of U.S. Farmland Will Not Be Planted With Crops This Year
It looks like 2019 could be the worst year for U.S. agriculture in modern American history by a very wide margin. As you will see below, millions upon millions of acres of U.S. farmland will go unused this year due to cataclysmic flooding. And many of the farmers that did manage to plant crops are reporting extremely disappointing results. The 12 month period that concluded at the end of April was the wettest 12 month period in U.S. history, and more storms just kept on coming throughout the month of May. And now forecasters are warning of another series of storms this week, and following that it looks like a tropical storm will pummel the region. As Bloomberg has pointed out, we have truly never seen a year like this ever before…
There has never been a spring planting season like this one. Rivers topped their banks. Levees were breached. Fields filled with water and mud. And it kept raining.
Many farmers just kept waiting for the flooding and the rain to end so that they could plant their crops, but that didn’t happen.
At this point it is too late for many farmers to plant crops at all, and it is now being projected that 6 million acres of farmland that is usually used for corn will go completely unsown this year…
There has never been weather like this, either. The 12 months that ended with April were the wettest ever for the contiguous U.S. That spurred other firsts: Corn plantings are further behind schedule for this time of year than they have been in records dating to 1980 and analysts are predicting an unheard-of 6 million acres intended for the grain may simply go unsown this year.
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American Soil Is Being Globalized: Nearly 30 Million Acres Of U.S. Farmland Is Now Owned By Foreigners
American Soil Is Being Globalized: Nearly 30 Million Acres Of U.S. Farmland Is Now Owned By Foreigners
All across America, U.S. farmland is being gobbled up by foreign interests. So when we refer to “the heartland of America”, the truth is that vast stretches of that “heartland” is now owned by foreigners, and most Americans have no idea that this is happening. These days, a lot of people are warning about the “globalization” of the world economy, but in reality our own soil is rapidly being “globalized”. When farms are locally owned, the revenue that those farms take in tends to stay in local communities. But with foreign-owned farms there is no guarantee that will happen. And while there is plenty of food to go around this is not a major concern, but what happens when a food crisis erupts and these foreign-owned farms just keep sending their produce out of the country? There are some very serious national security concerns here, and they really aren’t being addressed. Instead, the amount of farmland owned by foreigners just continues to increase with each passing year.
Prior to seeing the headline to this article, how much U.S. farmland would you have guessed that foreigners now own?
Personally, I had no idea that foreigners now own nearly 30 million acres. The following comes from NPR…
American soil.
Those are two words that are commonly used to stir up patriotic feelings. They are also words that can’t be be taken for granted, because today nearly 30 million acres of U.S. farmland are held by foreign investors. That number has doubled in the past two decades, which is raising alarm bells in farming communities.
How did we allow this to happen?
And actually laws regarding land ownership vary greatly from state to state. Some states have placed strict restrictions on foreign land ownership, while in other states it is “a free-for-all”…
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Crop Catastrophe In The Midwest – Latest USDA Crop Progress Report Indicates That A Nightmare Scenario Is Upon Us
Crop Catastrophe In The Midwest – Latest USDA Crop Progress Report Indicates That A Nightmare Scenario Is Upon Us
The last 12 months have been the wettest in all of U.S. history, and this has created absolutely horrific conditions for U.S. farmers. Thanks to endless rain and historic flooding that has stretched on for months, many farmers have not been able to plant crops at all, and a lot of the crops that have actually been planted are deeply struggling. What this means is that U.S. agricultural production is going to be way, way down this year. The numbers that I am about to share with you are deeply alarming, and they should serve as a wake up call for all of us. The food that each one of us eats every day is produced by our farmers, and right now our farmers are truly facing a nightmare scenario.
You can view the latest USDA crop progress report right here. According to that report, corn and soybean production is way behind expectations.
Last year, 78 percent of all corn acreage had been planted by now. This year, that number is sitting at just 49 percent.
And the percentage of corn that has emerged from the ground is at a paltry 19 percent compared to 47 percent at this time last year.
We see similar numbers when we look at soybeans.
Last year, 53 percent of all soybean acreage had been planted by now. This year, that number has fallen to 19 percent.
And the percentage of soybeans that have emerged from the ground is just 5 percent compared to 24 percent at this time last year.
In other words, we are going to have a whole lot less corn and soybeans this year.
Farmers in the middle of the country desperately need conditions to dry out for an extended period of time, but so far that has not happened.
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Floods And Drought Devastate Crops All Over The Planet – Could A Global Food Crisis Be Coming?
Floods And Drought Devastate Crops All Over The Planet – Could A Global Food Crisis Be Coming?
It looks like global food production could be well below expectations in 2019, and that could spell big trouble in the months ahead. In recent weeks, I have written extensively about the problems that we have been experiencing here in the United States. As many as a million calves were lost to the flooding that hit the state of Nebraska in March, farmers have planted less than half of the corn that is normally in the ground by this time of the year, and a lot of the crops that have been planted in the middle of the country are really struggling due to extremely wet soil. But it isn’t just the United States that is facing a very troubling year. Earlier today, one of my readers sent me an article entitled “Global food crisis ahead as extreme weather events devastate crops and fields around the world”which I would encourage everyone to read. In that article, we are told that after the worst drought in 116 years Australia has actually been forced to import wheat. And according to the Guardian, this is the first time in 12 years that this has happened…
Australia is planning to import wheat for the first time in 12 years after drought across the eastern states saw grain production fall 20% last year.
The Department of Agriculture and Water Resources confirmed this week it had issued a bulk import permit to allow wheat to be brought in from Canada to be processed for the domestic market.
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Total Catastrophe For U.S. Corn Production: Only 30% Of U.S. Corn Fields Have Been Planted – 5 Year Average Is 66%
Total Catastrophe For U.S. Corn Production: Only 30% Of U.S. Corn Fields Have Been Planted – 5 Year Average Is 66%
2019 is turning out to be a nightmare that never ends for the agriculture industry. Thanks to endless rain and unprecedented flooding, fields all over the middle part of the country are absolutely soaked right now, and this has prevented many farmers from getting their crops in the ground. I knew that this was a problem, but when I heard that only 30 percent of U.S. corn fields had been planted as of Sunday, I had a really hard time believing it. But it turns out that number is 100 percent accurate. And at this point corn farmers are up against a wall because crop insurance final planting dates have either already passed or are coming up very quickly. In addition, for every day after May 15th that corn is not in the ground, farmers lose approximately 2 percent of their yield. Unfortunately, more rain is on the way, and it looks like thousands of corn farmers will not be able to plant corn at all this year. It is no exaggeration to say that what we are facing is a true national catastrophe.
According to the Department of Agriculture, over the past five years an average of 66 percent of all corn fields were already planted by now…
U.S. farmers seeded 30% of the U.S. 2019 corn crop by Sunday, the government said, lagging the five-year average of 66%. The soybean crop was 9% planted, behind the five-year average of 29%.
Soybean farmers have more time to recover, but they are facing a unique problem of their own which we will talk about later in the article.
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The U.S. Faces A Catastrophic Food Supply Crisis In America As Farmers Struggle
The U.S. Faces A Catastrophic Food Supply Crisis In America As Farmers Struggle
American farmers are battling several issues when it comes to producing our food. Regulated low prices, tariffs, and the inability to export have all cut into the salaries of farmers. They are officially in crisis mode, just like the United States’ food supply.
“The farm economy’s in pretty tough shape,” said John Newton, chief economist at the American Farm Bureau Federation. “When you look out on the horizon of things to come, you start to see some cracks.” Average farm income has fallen to near 15-year lows under president Donald Trump’s policies, and in some areas of the country, farm bankruptcies are soaring. And with slightly higher interest rates, many don’t see borrowing more money as an option. “A lot of farmers are going to give the president the benefit of the doubt, and have to date. But the longer the trade war goes on, the more that dynamic changes,” said Brian Kuehl, executive director of Farmers for Free Trade, according to Politico.
With no end to the disastrous trade war in sight, many farmers have traveled to Washington to share their plights with the president himself hoping that he’ll end the trade war that’s exacerbating an already precarious food crisis. Farmers make up a fairly large chunk of president Trump’s base, and an unwillingness to put food production in the United States first could be detrimental for Trump reelection chances in 2020. It could also be the beginning of a catastrophic food shortage.
The Federal Reserve Bank of Minneapolis warned back in November of rising Chapter 12 bankruptcies used by family farmers to restructure massive amounts of debt. The Fed said that the strain of low commodity prices “is starting to show up not just in bottom-line profitability, but in simple viability.”
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Midwest Farm Bubble Continues Collapse As Farm Incomes Expected To Crash In 2017
Midwest Farm Bubble Continues Collapse As Farm Incomes Expected To Crash In 2017
Earlier this week the U.S Department of Agriculture released its biannual report of farm incomes which paints a very bleak picture for the American farmer. In its first forecast for 2017, the USDA sees real farm cash receipts down 14% versus 2015 and 36% from the previous high set in 2012 as farm debt continues to soar and leverage surges to all-time highs.
As the Wall Street Journal notes, the deadly combination of rising input costs, lower grain prices, a strong dollar and excessive leverage will likely force many of America’s Midwest farmers out of business in 2017.
Costs for seeds, fertilizer and equipment climbed so high and grain prices dropped so low that he still lost more than $120 an acre. Afraid to come up short again, Mr. Scott decided last fall not to plant 170 acres of winter wheat, close to a third of the usual amount. U.S. farmers sowed the fewest acres of winter wheat this season in more than a century.“No one just grain farms anymore,” said Deb Stout, whose sons Mason and Spencer farm the family’s 2,000 acres in Sterling, Kan., 120 miles east of Ransom. Spencer also works as a mechanic, and Mason is a substitute mailman. “Having a side job seems like the only way to make it work,” she said.
The and her husband have declared bankruptcy before. Farmers around Sterling lost $6,400 on average in 2015, the latest available data, after profits of $80,800 a year earlier, according to the Kansas Farm Management Association.
Meanwhile, America’s share of the global grain trade has been cut in half since the 1970’s giving domestic farmers less control over pricing which has grown increasingly volatile over the past decade.
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Deep Trouble Down In The Ground
Deep Trouble Down In The Ground
In my local newspaper column, I harp and carp about what I think is an overuse of farm field tile drains. Our local Ohio farming depends heavily on tile drainage for good crops so being critical of it is precarious. But now there is an uproar in Iowa indicating that perhaps I’m not so far off base. For those of you unfamiliar with tight clay soils, drainage systems using clay or concrete tile or now mostly plastic, to carry the water away underground, are necessary for profitable yields if the land is to be kept in a high state of cultivation. Surface water seeps down through the soil into the tile system and is funneled away into creeks and ditches. Without such drainage, the soil would “lay wet” too long in spring and after rains. Much of this kind of soil is very fertile, so it pays to drain it. In earlier years, just the wettest areas of fields were tiled. (I’ve told this story before but can’t help it. As a child I watched my grandfather digging ditches and installing clay tile by hand. He said the water coming out of a tile outlet was good for a body, especially when it carried little particles of iron rust in it. Then one day he noticed that some of those specks of rust wriggled.) Today, whole fields are crisscrossed systematically every 50 feet or so with tile about two to three feet underground. The result is that after heavy rains, the water flushes out faster, creeks and rivers overflow faster, and flooding on country roads and on city streets seems to be worse although how much of this can be blame directly on tile is disputed. One result that I find almost amusing is that on rural roads drifts of cornstalks now float out of the fields after heavy rains. Worse than snow drifts.
