The Average U.S. Farm Is $1,300,000 In Debt, And Now The Worst Farming Crisis In Modern History Is Upon Us

We haven’t seen anything like this since the Great Depression of the 1930s.  Leading up to this year, farm incomes had been trending lower for most of the past decade, and meanwhile farm debt levels have been absolutely exploding.  So U.S. farmers were desperate for a really good year, but instead 2019 has been a total disaster.  As I have been carefully documenting, due to endless rain and catastrophic flooding millions of acres of prime farmland didn’t get planted at all this year, and the yields on tens of millions of other acres are expected to be way, way below normal.

As a result, we are facing the worst farming crisis in modern American history, and this comes at a time when U.S. farms are drowning in more debt than ever before.  In fact, the latest numbers that we have show that the average U.S. farm is 1.3 million dollars in debt.

Debt-to-asset ratios are seeing the same squeeze, with more farms moving into a ratio exceeding 80%. Barrett notes each year since 2009 has seen an increase in the average amount of total debt among farmers, and 2017 was no exception. Average debt rose 10% to $1.3 million. The biggest increase was in long-term debt, such as land.

Farming in the 21st century has become an extraordinarily risky business, and countless U.S. farmers were already on the verge of going under even before we got to 2019.

Now that this year has been such a complete and utter disaster, many farms will not be able to operate once we get to 2020.

Minnesota farmers Liz and Bob Krocak were hoping for better days ahead as this year began, but things have been really tough and their debts have become overwhelming.  During a recent meeting with their creditors, Liz was so distraught that she literally burst into tears

They had to face their creditors at a mediation. There was Del, the mechanic, whom they owe $28,000 and who now can’t help his son buy a home. There was Steve, the feed store guy, who is 64 and has delayed his retirement because of the Krocaks’ $311,000 bill.

Liz recalled the mediator opening the meeting by saying, “This is going to be an emotional day. I can see everybody really likes this family.” Liz had burst into tears then – and she was crying again now, describing the scene seven months later.

“We just hope there’s a farm left at the end of it,” she said.

In total, the Krocaks just happen to be 1.3 million dollars in debt.

At this point, there isn’t a prayer that all of that debt will ever be paid off.  All they can really hope for is more patience from their creditors, because without it the farm is going under.

The Krocaks recently received a check for about 12,000 dollars from the federal government, and they are very grateful for the money, but the truth is that it isn’t even going to make a dent in their 1.3 million dollar debt.

If the horrific weather and endless flooding wasn’t enough, about a week ago the Chinese government announced that they would be ending all “purchases of U.S. agricultural products”, and that was a devastating blow for farmers all over the nation.

In particular, soybean farmers are going to see demand for their crops absolutely collapse.  In recent years, China has purchased approximately 60 percent of all U.S. soybean exports.

And even if a trade deal is eventually reached, it is unlikely that all of that demand is ever going to come back.  Right now, the Chinese are spending enormous amounts of money “to build transportation infrastructure to ship soybeans grown in what used to be rain forests” in Brazil.  They aren’t going to abandon all of that just because Trump suddenly changes his mind.

And the truth is that it is extremely unlikely that Trump will change his mind and cave in to the Chinese.

So for the foreseeable future, U.S. farmers are going to be facing weaker markets and lower prices, and that is going to be the final straw for many of them.

Have you ever been at a point in your life where you have endured problem after problem and then one day a final crushing blow comes along that takes away the last shred of hope that you were holding on to?  That is precisely what has happened to farmers like Bob Kuylen of North Dakota.

“It’s really, really getting bad out here,” said Bob Kuylen, who’s farmed for 35 years in North Dakota.

“Trump is ruining our markets. No one is buying our product no more, and we have no markets no more.”

We keep hearing about “government bailouts”, but they aren’t going to be nearly big enough for most farmers.  Kuylen has worked as hard as he possibly could, but he was not able to overcome the challenges he was facing, and now he is facing financial disaster.  He would walk away, but he says he can’t because “I’ve invested everything I have in farming”.

Kuylen, who farms roughly 1,500 acres of wheat and sunflowers, lost $70 per acre this year, despite growing good crops. Current government subsidies only cover about $15 per acre, he said.

“There’s no incentive to keep farming, except that I’ve invested everything I have in farming, and it’s hard to walk away,” he said.

It would be nice to think that all of these farmers will somehow bounce back next year, but that isn’t likely.  It is very doubtful that there will be any sort of a trade agreement with China before the 2020 presidential election, and global weather patterns are not going to be getting any more stable.  Sadly, it is entirely possible that next year could be even tougher for U.S. farmers than this year was.

So please say a prayer for our farmers.  They grow the food that we all eat on a daily basis, and their hard work is rarely recognized on a national basis. They are unsung heroes, and right now most of them are really, really hurting.

Michael Snyder

Author: Michael Snyder

Michael Snyder is a former Washington D.C. attorney who now publishes The Economic Collapse Blog and End of the American Dream. Michael and his wife Meranda believe that God is raising up a Remnant in these last days (Revelation 12:17; Revelation 14:12) that will bring in the greatest move of God the world has ever seen and the greatest harvest of souls the world has ever seen.

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Linda Hasche
Linda Hasche (BelieveActs2)
Member
August 16, 2019 12:36 PM

My hubby is a farmer here in NW IOWA (small family farm). The county we live in appears to have a supernatural protection from the Heavenly Father, because in spite of what is occurring even a county over . . . Many of the farmers here have been able to plant. However, the crops are not what they have been in years past (some don’t look very healthy) and the weather here is quite “odd” for August, where the temps can reach over 100 degrees. Not the case this year. Mostly it has been in the 80s, but even lows in the 50s overnight.
FOLKS . . . Judgement is here in USA, Mystery Babylon.
Famine IS coming.
Seek the LORD on what you should do, for HE will direct each person who seeks him with a humble and repentant heart.
Directions will be specific for a person/family and it’s not to share with others what you are directed to do, unless the LORD specifically has you share. Wisdom is knowing when to keep your mouth shut and when to speak up. Those in the Navy know this truth: “Loose lips sink ships”

Warnings have gone out over and over and over again. Have we reached the time of this:

2 CHRONICLES 36:15-16 ~
“THE LORD, THE GOD OF THEIR ANCESTORS, SENT PERSISTENTLY TO THEM BY HIS MESSENGERS, BECAUSE HE HAD COMPASSION ON HIS PEOPLE AND ON HIS DWELLING PLACE; BUT THEY KEPT MOCKING THE MESSENGERS OF GOD, DESPISING HIS WORDS, AND SCOFFING AT HIS PROPHETS, UNTIL THE WRATH OF THE LORD AGAINST HIS PEOPLE BECAME SO GREAT THAT THERE WAS NO REMEDY.”

Dwight
Member
August 16, 2019 4:50 PM

Amen

Avidan
Member
August 18, 2019 2:59 PM

Blessings Linda
To All Warns People Of Impending Catastrophic, Peace And Blessings Of The Living God Be Upon You And Your Family.

Read Malachi 3:16-18 and 4: 1-6.

The Living God ln His Voice Of His Splendor
ln A Discuss Once Told Me:-

To Get Point Across He Called Me By First Name With Emphasis!

He Said
I quote
“What Is Coming!
You Will Not Believe It”

I Was Jolted, l Was Shaken.

He ls Calling On All His Children
To Warn Others.
lf We Are Seeking Grace And Protection From The LORD.
We Must Warn Others.

REPENT YOU! REPENT ME!! REPENT ALL!!!

Linda Hasche
Linda Hasche (BelieveActs2)
Member
August 18, 2019 6:50 PM
EXCELENT Scriptural References, Avidan, and AMEN on what the LORD told you, “What is Coming you will not believe it!” And the warnings have gone out from all over the globe and REPENT is NECESSARY; to have a clean heart and Holy Walk before the LORD. Absolutely NONE of us can make it . . .can fulfil our destiny . . without the leading of Holy Spirit. LORD HELP US ALL!!! . Malachi 3:16-18 ~ “Then those who feared the Lord spoke to one another, and the Lord gave attention and heard it, and a book of remembrance was written before Him for those who fear the Lord and who esteem His name. “They will be Mine,” says the Lord of hosts, “on the day that I prepare My own possession, and I will spare them as a man spares his own son who serves him.” So you will again distinguish between the righteous and the wicked, between one who serves God and one who does not serve Him.” And Malachi 4:1-6 ~ ““For behold, the day is coming, burning like a furnace; and all the arrogant and every evildoer will be chaff; and the day that is coming will set them ablaze,” says the Lord of hosts, “so that it will leave them neither root nor branch.” “But for you who fear My name, the sun of righteousness will rise with healing in its wings; and you will go forth and skip about like calves from the stall. You will tread down the wicked, for they will be ashes under the soles of your feet on the day which I am preparing,” says the Lord of hosts. “ Remember the law of Moses My servant, even the statutes and ordinances which I commanded him in Horeb for all Israel.… Read more »
A. Ayer
A. Ayer
Member
October 17, 2019 9:43 AM
I have a prophetic message I would like to share about this. A few years ago, God told me that the revival we are looking for would “come in the restoration”. It was clear that, yes, the bad things prophesied would come, but it would be the Christians stepping up to the plate and supporting each other that would bring the waves of the Revival/Revolution that we are looking for. I do not know precisely what this means. The specific things God has shown me are as follows: 1) We are to look EACH DAY for small things to help our neighbors through crisis times. I felt this must be intentional; like putting this action on a LIST and making sure that, each and every day, we made even the smallest effort to tangibly help someone. A vision that came to mind was this: I was running alongside someone, and I was throwing down gold dust in front of them; just enough for the next step. So as I ran, I tossed a handful of gold dust in front of the other person AS THEY RAN. 2) God spoke to me about this, but I felt it pertains to most all believers in our country–STOP SENDING YOUR RESOURCES OUTSIDE OF THE CHURCH! We have become like the priests in the story of the Good Samaritan. We send huge amounts of money overseas for missions, and to national charities, and we are literally stepping over the people in need in our own congregations. Sending the money AWAY means we can stay uninvolved; not have any direct connection or responsibility. I felt this is especially a problem in the larger churches. God told me to be intentionally working within our OWN church, giving our money and extra to people within the congregation.… Read more »
Corrine
Corrine
Member
October 17, 2019 7:28 PM

A.Ayer, thank you for sharing this important message.. it seems the Lord is really stirring your heart about all of this. Our farmers are so very important. If the Lord shows you something about how we can help our farmers , please share with us.
Blessings,
Corrine

Marcio Ferez Jr.
Member
October 17, 2019 6:18 PM

That’s a great message, A. Ayer. Thanks for sharing and focusing our attention to do even little things for good.

Sujit Thomas
Contributor
August 17, 2019 10:01 AM

It is the Lord who sets us free from slavery to creditors and provides a living for us (2 Kings 4:1–7). Neither the US government nor the World Bank nor the United Nations can help these farmers. Only the Lord can bail them out, so I pray that the United States sees the rise of several Elishas.

JPS
JPS
Member
August 19, 2019 5:39 AM

I found myself broken during my hour long commute this morning for what would normally be mercy for the Farmers and their livelihood, but today was different as I looked across almost every field under at least an inch of water after a massive storm ripped through NW Ohio last night, I found myself pleading for mercy for the souls of men. Oh the Mercy of the Father to change the hearts of those that seek him and to align our hearts with his

Mike...
Mike...
Member
August 17, 2019 8:24 AM

In the past, our country has stockpiled food in case of famine. Cheese, wheat, powdered milk, ect.

Since China is currently boycotting many of our food exports. The government should buy this excess food and restart our national food stockpile program.

Famine could strike this nation or any part of the world at any time.

What’s the old saying, an ounce of prevention is worth a pound of cure!

James Bailey
Admin
August 17, 2019 12:53 PM

The problems could easily be solved if those in positions of great authority were not seeking our destruction, but the scriptures reveal they are and will continue until the Lord returns to destroy them.

Ambassador
Ambassador
Member
August 17, 2019 11:08 PM

Tons of corn being stored was lost this spring due to flooding. Add to that more rain and humidity levels, you’ve got mold. Not great conditions for storage for whatever survived the floods.

On a personal note, we stocked food in preparation for hurricanes, but it was all blown away during the storm.

The Lord is our provider. It’s not possible to prep for any great length of time in the event of uncertain calamities and disasters. Just saying….

Avidan
Member
August 18, 2019 5:12 PM

IMPORTANT MESSAGE TO ALL LORD’S CHILDREN. THE LAST DAYS MESSAGE!!
……………………………………………………………………………

On August 18th The LORD Placed lt In My Heart To Read The Book Of Malachi.

Instinctively l Went To Malachi 3:16, l Read Down To Chapter 4:1-6

I Paused.

Then l was Urged To Read From Malachi 3:1 Down.
I Read It, I Did Not Really Get The Intended Message.
Malachi 3:1 Spoke Of Messengers That Would Prepare The Way Before The Second Coming.

Then The LORD Opened My Mind To The Book Of Malachi Chapters 3-4
The Messengers (or Elijah That ls Coming ln the Last Days Are The Repentant Hearts Those Who Has Truly Repented And Believe ln The Lord In These Last Days)

We Are Last Days Elijah.

What Did Elijah Did First Time Around Please Read Matthew 3:1-3.
He Called On People To REPENT!
And Do Spiritual Cleansing.
And To Prepare The Way Of Their Hearts For
The Return Of The LORD.

The LORD ls Saying If We Truly Believe In Him
We Must Be His Last Days Elijah (Messengers)

If We Failed To Call People To Repent ln These Last Days We Are Of No Help To Living God’s Kingdom.

Then In Chapter 3:16 down To Chapter 4:1-6
He Spoke Of The Reward Of Our Being His Last Days Disciples. Please Read.

The LORD Is Saying Knowing Him Is Not Enough.
We Must Be Tenacious Towards Heavens
We Must Be His Last Days Messengers (Elijah)

REPENT YOU! REPENT ME!! REPENT ALL!!!

Please Answer The Call Of The LORD
Call People To Repent
For Each One You Call A Book Of Remembrance Is Written ln Your Account.

The GRACE Of The LORD Will Be Found In You When He Returns.

Savage
Savage
Member
October 16, 2019 3:39 AM

I live in Kansas and have a few goats. Each fall I go to a farmer across town to get a dozen alfalfa bales for winter food. The farmer has a high building, open in the front in which he stacks small alfalfa bales for guys like me, large alfalfa bales for his own cattle, and some small bales of wheat straw and prairie hay. It’s self serve – load yourself and put $7/bale in the drop box. I went there last week to check this year’s alfalfa harvest and get some wheat straw. There was no alfalfa! And the few bales of wheat straw was left over from last year! Mr Campbell explained, “Spring floods destroyed my alfalfa, and my wheat.” “How are you going to feed your cattle?” I asked. He said he was looking for alfalfa in Western Kansas.
I’d heard how the floods delayed corn planting by 40 days running the risk of winter weather ruining harvest. But now I am face to face with wheat shortage and alfalfa shortage!

Will the Scot
Will the Scot
Member
October 16, 2019 12:21 PM

FYI, my family owns 2 farms in North Dakota, which we rent to even larger farmers. This year they put in their crops (beans) later than usual due to the Spring storms. Only by God’s Grace were they able to harvest their crops the day before the blizzard hit this month. But many, were not able… they need our prayers. And we need to store up food because, with half the corn crop, etc., lost, many animals will starve this Winter or be culled down to a manageable level, permanently raising the cost of meat. In addition, I read this week that China will be allowed to buy some of the remaining crop at a significant price increase, which will help some farmers. But keep in mind many farmers have crop insurance which helps some, but is never enough. What harvested crop remains in the US will soon, hopefully in years not months, be inflated beyond our comprehension, as described in Rev. 6:6, ‘a loaf of bread for a day’s wages.’ For more info, read:
http://endoftheamericandream.com/archives/major-crop-disaster-historic-midwest-blizzard-has-farmers-expecting-massive-crop-losses-as-devastating-as-weve-ever-seen

RSS
RSS
Member
August 17, 2019 8:32 AM

They are watching their livelihood destroyed and debts pile sky high, and they have no choice but to keep going. Lord, have mercy.

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