Southeast (U.S.)

Another Sign of Trouble in the Ag Economy: Farm Bankruptcies Are on the Rise

Wed, 23 Apr 2025 14:09:23 GMT

It’s no secret there’s trouble in the ag economy. As AgWeb reported in March , the Ag Economists’ Monthly Monitor found 62% of ag economists think the row crop side of agriculture is currently in a recession, and 85% think the situation will accelerate consolidation on farms and among agribusinesses. A new report from Bloomberg Law shows family farm bankruptcies are also on the rise.

Bloomberg Law’s Alex Wolf and Skye Witley recently reported that family farm bankruptcies had already increased by 55% last year compared to 2023. And there’s no sign of that slowing down, as Wolf and Witley report bankruptcies are trending even higher this year. That’s as farmers continue to grapple with depressed agricultural commodity prices and high input costs.

Farm bankruptcies are on the rise in the U.S.

(Bloomberg)

“And while much of the industrywide distress predates his second stint in the White House, (President Donald) Trump has quickly nudged more farmers closer to the brink of going under and created turbulence for producers trying to make ends meet,” Wolf and Witley reported in the Bloomberg Law story. “Unpredictable tariffs, immigration overhauls, federal program cuts and frozen Agriculture Department funding are now part of the discussions farmers are having as they seek financial help.”

The report shows the last time farm bankruptcy filings soared was in 2019, which was the height of the previous trade war with China. The previous Trump administration sent farmers more than $20 billion in Market Facilitation Program payments (MFP) to help cover export losses.

Following that financial aid to farmers, the report shows family farm bankruptcies, filed under Chapter 12 of the U.S. bankruptcy code, declined each year until 2024.

According to court records, the number of new cases in 2024 jumped to 216 from a near 20-year low of 139. The report also shows those filings have continued to speed up this year, with 82 cases filed over the first three months of 2025, which is nearly double the figure for the same period a year ago.

$10 Billion in ECAP Money to Farmers

More help is on the way, if not already on farm. That’s because the American Relief Act of 2025, which was passed by Congress late last year, authorized the $10 billion for ECAP payments to help offset losses growers incurred during the 2024 crop year. Those payments are being dispersed now, and farmers have until August to sign up.

According to Joe Glauber, former USDA chief economist and a current emeritus fellow with the International Food Policy Research Institute, direct payments have helped farmers. But the threat of farm bankruptcies, and the reality of financial pain if markets don’t improve, is still there

“Remember, we are getting a ton of money put into the sector this year from the bill that was passed by Congress in December,” Glauber told “AgriTalk’s” Chip Flory. “So that’s $31 billion coming in with $10 billion of that going out to farmers as direct income support to offset low margins. So, I don’t think we’ll see a lot of farms going out of business. But certainly, if these short, tight margins persist for a long time, then that’s going to affect people.”

Rural Bankers Show Concern

According to the Federal Reserve Bank of Chicago, the number of farm loans at risk of defaulting is the highest it’s been since 2020 as demand for non-real-estate farm loans has surged while repayment rates dropped. The Federal Reserve Bank of Chicago serves the Seventh Federal Reserve District , which includes Iowa, and most of Illinois, Indiana, Michigan and Wisconsin.

Ag lenders are also concerned. The most recent Rural Mainstreet Index (RMI) shows for the 19^th time in the past 20 months, the RMI sank below the 50.0 growth reading in April. This specific index surveys bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

While tariffs and Trump’s focus on trade are causing uncertainty, Ernie Goss, MacAllister chair in regional economics at Creighton University, says ag lenders are actually supportive of Trump’s tough stance on trade.

“The economic outlook for 2025 farm income remains weak, according to bank CEOs. Despite the negative fallout from tariffs, 75% of bankers support the tariffs on China, and 79.2% back the 90-day pause on other tariffs,” Goss told “AgriTalk’s” Chip Flory. “I’m an economist and we economists, we’re not very keen on tariffs and trade restrictions. Nonetheless, the bankers, three out of the four bankers are supportive of what the president’s doing there, and I would argue that the farmers are on the president’s side as well.”

The RMI also found rural bankers remain pessimistic about economic growth for their area over the next six months. The April confidence index increased to a weak 36.0 from March’s 30.4.

“Weak grain prices and negative farm cash flows, combined with downturns in farm equipment sales over the past several months, pushed banker confidence lower,” Goss said.

Cotton Hit Especially Hard

Cotton farmers are especially feeling the pain with younger farmers already having difficulty getting financed for this year. Cheap cotton prices and dwindling demand are just part of the problem. Input costs have climbed, and there’s no safety net to be found from a new farm bill. One Georgia farmer told Farm Journal that the current farm bill is irrelevant and worthless, and if a new one doesn’t get passed this year, the cotton industry is doomed.

“We’re going to plant cotton and don’t even have a clue if we’re going to get our money back,” says Franz Rowland, who grows cotton in Boston, Ga. “There’s no farm bill to support us, and the reference price is so low that it’s not anything that we can depend on. So, we’re going to put several million dollars in the ground and don’t even know if we’re going to get it back.”

As president and CEO of National Cotton Council (NCC), Gary Adams sees and hears the somber situation for U.S. cotton farmers from coast to coast. Adams says the outlook for 2025 is even worse than 2024.

“We’ve gone beyond just losing money now that we’re to the point of losing the farm,” he says. “Unfortunately, where the industry is, that’s what it looks like as we’re going into 2025.”

Darren Hudson is the Larry Combest endowed chair for agricultural competitiveness and director of the International Center for Agricultural Competitiveness at Texas Tech University. Hudson focuses on cotton, and on “AgriTalk” this week, he described why cotton farmers, and the entire cotton industry, is feeling the pinch.

“Cotton is fairly input intensive anyway, and so urea, nitrogen costs, all these chemical costs, they’re facing those just like every other farmer out there, but we’ve had three consecutive really bad moisture years,” Hudson told “AgriTalk.” “So, we have a long way to go to get back to what you think of as normal growing conditions.”

Hudson says three consecutive years of declining production due to drought isn’t just a problem for producers, it’s also the cotton infrastructure that relies on that crop.

“We’ve had three years, you know, that processing infrastructure all that stuff is strained and disappearing, and it’s getting harder and harder to farm as a cotton farmer out here,” says Hudson, who’s based in Lubock, Texas. “We’re not unusual compared to everybody else. We don’t want to sing a sad story, but I think all of ag is in a squeeze at this moment with [commodity] prices versus inputs.”

Is the Ag Industry Ripe for Consolidation?

Another reality for U.S. agriculture, while the majority of farms in the U.S. are small family farms, that sector doesn’t represent the majority of farm production today.

USDA ERS data shows while 88% of U.S. farms are considered “small family farms,” those farms only represent18.7% of the total U.S. value of farm production.

(Ben Brown, University of Missouri )

USDA ERS data shows while 88% of U.S. farms are considered “small family farms,” those farms only represent 18.7% of the total U.S. value of farm production.

On the other hand, while 3.4% of U.S. farms are “large-scale family farms,” that sector represents 51.8% of the total value of U.S. farm production.

U.S. Southeast Faces Daunting Cleanup from Helene as Death Toll Rises

Thu, 12 Dec 2024 16:41:42 GMT

Authorities across the southeastern U.S. faced the daunting task on Saturday of cleaning up from Hurricane Helene, one of the most powerful and perhaps costliest storms to hit the country, as the death toll continued to rise.

At least 47 deaths were reported by early Saturday, and officials feared still more bodies would be discovered across several states.

Damage estimates across the storm’s rampage range between $95 billion and $110 billion, potentially making this one of the most expensive storms in modern U.S. history, said Jonathan Porter, chief meteorologist of AccuWeather, a commercial forecasting company.

Downgraded late on Friday to a post-tropical cyclone, the remnants of Helene continued to produce heavy rains across several states, sparking massive flooding that threatened to cause dam failures that could inundate entire towns.

“The devastation we’re witnessing in Hurricane Helene’s wake has been overwhelming,” President Joe Biden said on Saturday. “Jill and I continue to pray for all of those who have lost loved ones and for everyone impacted by this storm.”

Biden was briefed about the loss of life and storm’s impact
on multiple states by Deanne Criswell, administrator of the Federal Emergency Management Agency, and Liz Sherwood-Randall, the White House’s homeland security adviser, the White House said.

The president directed them to continue to focus on speeding up support to storm survivors and accelerating recovery efforts, including the immediate deployment of additional search and rescue teams into North Carolina, it added.

At least 3 million customers remained without power on Saturday afternoon across five states, with authorities warning it could be several days before services were fully restored.

The worst outages were in South Carolina with more than 1
million homes and businesses without power, and Georgia where 750,000 were without power.

Some of the worst rains hit western North Carolina, which
saw almost 30 inches (76 cm) fall on Mount Mitchell in Yancey County, the National Weather Service’s Weather Prediction Center reported.

Atlanta was hit with 13 inches of rain, and farmers in South
Georgia were assessing the damage to the state’s $1 billion
cotton crop and $400 million pecan crop now in harvest season.

Before moving north through Georgia and into Tennessee and the Carolinas, Helene hit Florida’s Big Bend region as a powerful Category 4 hurricane on Thursday night, packing 140 mph (225 kph) winds. It left behind a chaotic landscape of overturned boats in harbors, felled trees, submerged cars and flooded streets.

Police and firefighters carried out thousands of water rescues throughout the affected states on Friday.

More than 50 people were rescued from the roof of a hospital in Unicoi County, Tennessee, about 120 miles (193 km) northeast of Knoxville, state officials said, after flood waters swamped the rural community.

‘CHIMNEY ROCK IS GONE’

The NWS issued flash flood warnings overnight for a swath of eastern Tennessee covering 100,000 residents, warning them to seek higher ground. The Nolichucky Dam in Tennessee’s Greene County was on the brink of failure on Saturday, officials reported, adding that a breach could occur at any time.

In western North Carolina, Rutherford County emergency officials warned residents near the Lake Lure Dam that it might fail, although they said late on Friday that did not appear imminent.

Multiple people in and around Chimney Rock, N.C., described the village’s downtown as washed out, with images online showing inches of mud and sediment, uprooted trees and snapped telephone poles and buildings turned into debris.

“All right folks, listen up, Chimney Rock is gone, Flowering Bridge is gone,” somebody known as Touristpov posted on TikTok, showing videos of the destruction. “I don’t know what they’ll do to get us out of here.”

In nearby Buncombe County, landslides forced Interstate Highways 40 and 26 to close and parts of them were washed out, the county said on X.

Mountain communities such as Boone and Burnsville, N.C., were cut off as highways were clogged with debris or washed out, said Rebecca Newton, who was scrambling to find anyone with cell service in the area who could check on her family home near Mount Mitchell.

“Towns are totally cut off,” she said after spending her morning making dozens of calls to friends in the area. “They’re using helicopters to get people out of Boone and Asheville.”

“Spruce Pine is gone, nothing but rooftops poking out of water,” she said of the mountain community about 50 miles northeast of Asheville.

Newton said a friend told her she had watched houses in her neighborhood slide one at a time into a river near Boone.

“It’s unreal,” she said.

The Burnsville Hub Facebook page is replete with people desperate to find anyone to check on relatives and friends cut off from telephone service.

One poster, Rachel Richmond, wrote, “I need any route that will get me as close as I can. I will walk the rest of the way. I need to get to my parents.”

WAKING TO DISASTER

The extent of the damage in Florida began emerging after daybreak on Friday.

In coastal Steinhatchee, a storm surge - a wall of seawater pushed ashore by winds - of eight to 10 feet (2.4-3 meters) moved mobile homes, the weather service said. In Treasure Island, a barrier island community in Pinellas County, boats were grounded in front yards.

The city of Tampa posted on X that emergency personnel had completed 78 water rescues of residents and that many roads were impassable because of flooding. The Pasco County sheriff’s office rescued more than 65 people.

A total of 11 people died in Florida, Governor Ron DeSantis said on Saturday, speaking in Perry, Fla., which saw 15-foot storm surges, larger than those seen in hurricanes in recent years.

“If you look around here, you can see that some homes are just rubble,” he said. “This stuff comes in, it’s fierce and it’s just unstoppable.”

FEMA’s Criswell joined DeSantis on a tour of storm-damaged areas of the state. She will travel to Georgia on Sunday and North Carolina on Monday, the White House said.

“I just want to say on behalf of the president that we extend our deepest sympathies for those families that have lost loved ones,” Criswell said.

Georgia Governor Brian Kemp’s office reported 15 storm-related fatalities in that state, while North Carolina Governor Roy Cooper said there had been two deaths there.

At least 19 people died during the storm across South Carolina, the Charleston-based Post and Courier newspaper reported, citing local officials.

(Reporting and writing by Rich McKay; additional reporting by Joseph Ax, Andrew Hay, Brad Brooks, Ismail Shakil and Andrea Shalal; Editing by Bill Berkrot, Daniel Wallis and Paul Simao)

Trade Associations Urge Biden Administration To Act Now To End Port Strike

Thu, 03 Oct 2024 18:11:32 GMT

A coalition of over 270 local, state and federal trade associations have signed a letter urging President Biden and his administration to use all of its authorities to end the port strike, get the ports open and get the parties back to the negotiating table.

Click here to read the full letter.

The associations involved represent:

American manufacturers
Farmers and agribusinesses
Wholesalers
Retailers
Restaurants
Importers
Exporters
Distributors
Transportation and logistics providers
Additional supply chain stakeholders

The Ag Retailers Association (ARA) is among the groups who sent the letter and is encouraging members to let them know how the strike will impact their businesses.

Background:
A port strike along the East and Gulf coasts began on Oct. 1 and will halt the flow of a wide range of goods, potentially leading to shortages and higher costs. According to an estimate from the Anderson Economic Group, a one week strike would cost the U.S. economy about $2.1 billion.

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