Depression era crisis in farming?

In spite of stereotypes about the scale and pervasiveness of factory farming, in The United States some 99% of all working farms are family farms, and most farms have annual incomes of less than $350K.

Incomes that are rapidly collapsing, by as much as 50% according to some sources.

Why? The chart below shows the 2015 year to date performance of several agricultural commodities, specifically coffee (-27%), hogs (-27%), wheat (-19%), soybeans (-15%), cattle (-15%) and corn (-9%).

Keep in mind farms may have high fixed costs, perhaps loans used to build infrastructure, that must be paid even as prices and revenue fall.

Low agricultural commodity prices, welcomed by consumers, are helping to drive American farmers into bankruptcy; .

Farmers were the first group to be impacted during the 1930s depression. Is it happening again?

Comments are closed.