{"id":3384,"date":"2025-12-13T21:26:07","date_gmt":"2025-12-13T21:26:07","guid":{"rendered":"https:\/\/microvibenews.com\/?p=3384"},"modified":"2025-12-13T21:26:07","modified_gmt":"2025-12-13T21:26:07","slug":"more-financially-distressed-farmers-will-lose-their-property-as-loan-repayments-and-incomes-falter","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=3384","title":{"rendered":"More financially distressed farmers will lose their property as loan repayments and incomes falter"},"content":{"rendered":"

<\/p>\n

Financial conditions in the agriculture economy are flashing more signs of strain as farmers\u2019 costs remain high while prices for their crops stay low.<\/p>\n

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A survey last month from the Chicago Fed found that third-quarter repayment rates in the Midwest for non-real-estate farm loans were lower than a year earlier for the eighth quarter in a row.<\/p>\n

Meanwhile, 21% of the lenders who responded to the survey said collateral requirements for farm loans rose in the third quarter, while none reported that requirements eased.<\/p>\n

And an overwhelming 92% majority expect net cash earnings, including government payments, for crop farmers to be lower during the fall and winter than a year earlier.\u00a0<\/p>\n

As a result, nearly half the bankers surveyed see forced sales or liquidations of farm assets owned by financially distressed farmers rising in the next three to six months.<\/p>\n

Earlier this month, the American Soybean Association (ASA) projected that 2025 will mark a third straight year of losses, noting that when\u00a0harvest began in September, futures prices for November were 25%-30% lower compared to 2022. <\/p>\n

At the same time, farm production expenses are seen increasing by $12 billion from a year ago to reach $467.4 billion in 2025. And with costs seen staying high next year, 2026 is shaping up to be more of the same.<\/p>\n

\u201cUnless revenues increase significantly next year, this would squeeze farmgate profits for a fourth year, marking the longest stretch of substantial soybean production losses since [USDA\u2019s Economic Research Service] 1998-2002 reporting period,\u201d the ASA warned.<\/p>\n

Several factors have spiked costs recently. President Donald Trump\u2019s tariffs have made key imports more expensive, Russia\u2019s war on Ukraine boosted fertilizer prices, and the Federal Reserve\u2019s earlier round of rate hikes lifted borrowing costs. <\/p>\n

On the demand side, Trump\u2019s trade war essentially halted Chinese orders for U.S. soybeans until just recently. <\/p>\n

Separate data have shown that U.S. farm bankruptcies have soared this year, and the\u00a0National Corn Growers Association raised alarms\u00a0this summer about \u201cthe economic crisis hitting rural America.\u201d<\/p>\n

Trump administration plans a $12 billion rescue that will serve as a \u201cbridge\u201d before more aid comes next year, but farmers say the short-term lifeline still won\u2019t be enough to cover their losses. <\/p>\n

In fact, losses this year for the nine major commodity crops should range from $35 billion to $44 billion, Shawn Arita, associate director of the Agricultural Risk Policy Center at North Dakota State University, told Reuters.<\/p>\n

Caleb Ragland, president of the ASA and a farmer himself, estimated the aid package will be enough for only about one-quarter of soybean losses.<\/p>\n

\u201cWe\u2019re appreciative of an economic bridge,\u201d he told Reuters, but added that the money is just \u201cplugging holes and slowing the bleeding.\u201d<\/p>\n<\/div>\n

#financially #distressed #farmers #lose #property #loan #repayments #incomes #falter<\/p>\n","protected":false},"excerpt":{"rendered":"

Financial conditions in the ag… <\/p>\n","protected":false},"author":1,"featured_media":3385,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[2099,3398,3402,2103,2101,3397,3401,1739,3399,1796,3400,491],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/3384"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3384"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/3384\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/3385"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}