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Old 11-04-2019, 09:22 PM
 
7,341 posts, read 6,950,185 times
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Farm Bankruptcies are up despite of farming subsidies

https://www.wisfarmer.com/story/news...go/4096381002/

Does this just mean the farmers are taking the subsidies, and filing bankruptcy so they dont have to pay their debts and retire on the subsidy money?
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Old 11-05-2019, 04:46 AM
 
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farming is hard work,I dont blame them
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Old 11-05-2019, 06:58 AM
 
Location: NC
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What you are calling subsidies are more like promised payments for adverse conditions provided by crop insurance or tariff compensation. Those payments have not yet gone out to the farmers, many of whom work on small profit margins. They are going belly up because they can’t pay equipment loans and seed or fertilizer bills.

But don’t worry. Big diversified conglomerates will buy them out for cheap.
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Old 11-05-2019, 10:42 AM
 
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Quote:
Originally Posted by luv4horses View Post
....

But don’t worry. Big diversified conglomerates will buy them out for cheap.
There have always been lots and lots of small farms; i.e., very inefficient and expensive operations. Larger more mechanized and more efficient farming and ranching operations have been displacing those small farms. That will continue. That same sort of thing is happening in retailing. There is just going back to the small, expensive and poorly stocked little corner stores. Sure a few will do well, but the vast majority will be replaced by more efficient retailing. Farms are the same. There will always be some small operations that do well but most are doomed.
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Old 11-05-2019, 01:27 PM
 
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The market dynamics for "farming" are much more complex than just boiling it down to tariffs and subsidies.
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Old 11-05-2019, 06:15 PM
 
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And subsidies are bound to take a whole lot longer to trickle down as compared to current bills needing to be paid.
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Old 11-05-2019, 11:20 PM
 
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Quote:
Originally Posted by mojo101 View Post
farming is hard work,I dont blame them
Its mostly machines, or poor illegals doing the hard work though, not the owners.

Quote:
Originally Posted by luv4horses View Post
What you are calling subsidies are more like promised payments for adverse conditions provided by crop insurance or tariff compensation. Those payments have not yet gone out to the farmers, many of whom work on small profit margins. They are going belly up because they can’t pay equipment loans and seed or fertilizer bills.

But don’t worry. Big diversified conglomerates will buy them out for cheap.
But the subsidies been around for a long time. They are quite substantial too. Or are you saying none of the subsidies have ever been remitted?

Quote:
Originally Posted by SWFL_Native View Post
The market dynamics for "farming" are much more complex than just boiling it down to tariffs and subsidies.
True, but this industry is being subsidized by what is seemingly a lot of money. Plus, they are growing food. If that is not stable enough industry or an enough of an in-demand product, than what else is? You think farms be last to go in any economy since what is the point of an economy other than to eventually buy food.
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Old 11-06-2019, 12:58 AM
 
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Quote:
Originally Posted by NJ Brazen_3133 View Post
Its mostly machines, or poor illegals doing the hard work though, not the owners.



But the subsidies been around for a long time. They are quite substantial too. Or are you saying none of the subsidies have ever been remitted?



True, but this industry is being subsidized by what is seemingly a lot of money. Plus, they are growing food. If that is not stable enough industry or an enough of an in-demand product, than what else is? You think farms be last to go in any economy since what is the point of an economy other than to eventually buy food.

You keep saying "this industry". Farming covers everything from growing shrimp to sugar cane to honey bees. That would be like calling manufacturing "this industry", when it includes everything from building cars to refrigerators.

Many farmers do not receive subsidies & most subsidies are in the form of insurance. Research the matter a bit. https://www.thebalance.com/farm-subsidies-4173885
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Old 11-06-2019, 01:36 AM
 
Location: Myrtle Creek, Oregon
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Farm Chapter 12 bankruptcies are up in the PNW, where nobody gets subsidies. There are about a dozen more bankruptcies in the Midwest, most of which can be traced to bad weather.
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Old 11-06-2019, 03:51 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
23,797 posts, read 41,447,473 times
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Farming is suffering a bit of the 'Walmart destroying small town commerce syndrome'

Soon we will only have 'corporate options' for all raw food products.

Farming takes a masterful economic and budgeting skillset + ability to excel at cultivation and animal husbandry. That is a rare combination of talent. Schools have failed America, industry / manufacturing has left America, Municipalities / counties and states have taxed farmers off their land (highest use of land is to Grow Houses!) & there are MANY easier ways to make a living, but few easier ways to go broke. 50% of the farmers I knew and grew up with had a FT night shift gig to support their farming habit. Those jobs are GONE!

And... weather matters, especially when 'leveraged'.

Capital intensive businesses are not easy to keep alive. My 'retired' neighbors spend over $50k / yr on personal property taxes on previous business and farm assets they have not got around to selling (no one wants or knows how to operate 20 - 50 yr old capital assets).

Expect a LOT more farming bankruptcies.

BTW, you can track where the subsides are going (not to the family farm).
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