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n. Illinois | Farm Bankruptices are not due to any trade war, They are due to Farmer's bad financial decisions made when they were making good money in 2020-2022 thinking that this time it would be different. It's never different. The 2020-2022 boom was driven by the China export boom but China is a horrible customer as you can not count on them and they are now gone.
Almost all farm bankruptcies will have High family living costs, Excessive Capital Spending issues, Horrible working capital management. Sometimes they will also have high operating expenses relative to the gross income but a well managed operation can overcome that issue.
As long as the lender can roll the working capital deficits into the Real Estate Equity they will work with you, But as soon as the land values falter and fall, the Farm Bankruptcies will explode because the evergreen roll program will come to a screeching end and the working capital deficits will mean someone isn't getting paid and then it just snowballs really quickly into a bankruptcy | |
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rise of farm bankruptcies due to trade war???
