Bankruptcies of US farms in September rose 24% to their highest level since 2011 amid tensions as a result of the trade war between President Donald Trump and China and the year of abnormal weather.
Producers are also becoming increasingly dependent on trade assistance and other federal income-generating programs, according to a report from the American Federation of Farmers' Bureaux, the country's largest nationwide farm organization.
Pressure on farmers is underscored by the fact that China’s retaliatory tariffs have dealt a critical blow to Trump as the president enters the campaign and fights to prevent impeachment.
The numbers also indicate the importance of the “first phase” of the deal that the administration is currently conducting with Beijing to increase imports of agricultural products in exchange for a pause in increasing US fees.
According to a report based on forecasts by the Ministry of Agriculture, nearly 40% of farm projected profits this year will come from trade assistance, disaster relief, federal subsidies, and insurance payments. This is $ 33 billion of the projected revenue of $ 88 billion.
The trade war and two consecutive years of adverse weather shocked farmers, who had already faced a sharp drop in commodity prices.
Recent bankruptcies have been concentrated in the Midwestern 13-state region, a key battlefield in the presidential election, where grains, soybeans, pigs, and dairy farms have been affected by trade disputes. More than 40% or 255 applications were in the region.