News US Bankruptcies
Significantly more farmers bankrupt in US
The number of bankrupt farms In the US has risen sharply in the past year compared to previous years. The number of bankruptcies is at its highest level since 2011. The trade war with China is one of the reasons.
According to released data from the US Courts, the number of bankrupt family farms in the agricultural sector increased by 2019% in 20 to 595, the highest number since 2011 when 637 farms had to throw in the towel. In 2019, there were an average of 2.95 bankruptcies per 10 companies. This is just below the average for 000, when it was 2011 bankruptcies. In total, there are just over two million farms in the US. In comparison: In the Netherlands, less than 2.99 in 1 farms went bankrupt in recent years.
The state of Wisconsin had the highest number of companies that went bankrupt in 2019, at 57 companies. This mainly concerned dairy farms. Georgia then had the highest number of bankruptcies. In that state, 41 farms were killed.
Trade war with China
The high number of bankruptcies was to be expected, the US Courts reported. This is partly due to the large increase in corporate debt and headwinds on the trade front with China. Several years ago, China was a major trading partner, buying more than $20 billion worth of agricultural commodities and products per year.
The trade war has cooled the relationship: In 2019, it was just r$7.8 billion. This huge drop has had a major impact on farmers' incomes. The weather conditions also played a major role. There have been floods and forest fires, among other things. The wet spring also had a negative effect.
Chanti Oussoren
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