Rural America suffers from an economic crisis with decrease in crops

On Thursday, and The National Assembly of Corn farmers raised warnings About “the economic crisis that strikes the countryside, America, with the decrease in commodity prices while the costs of inputs remain at its highest levels.”

Corn prices decreased by more than 50 % of its peak 2022, while production costs decreased by only 3 % in that period, and translated into a loss of 85 cents per inch, adding that the expectations for the next year are worse with low prices and high costs.

NCGA called Congress and Trump’s administration to enhance demand, including through a mixture of ethanol and increased access to foreign markets.

A week ago, The American Soya Association sent a message To Trump, she warns that “American soy farmers are standing on a commercial and financial edge.”

The group asked Trump’s priority to soybeans in commercial talks with China, seeking the main purchase obligations as well as removing Beijing duties on the United States

“Historically, the United States was the favorite of Chinese clients,” said the message. “However, due to the continuous tariff retaliation, our long -time customers in China and will continue to move to our competitors in South America to meet their request, Brazil can meet due to the significant increase in production since the previous trade war with China.”

As the rapid harvest season approaches, the association added that China did not buy any American soybeans for the coming months.

She said that the longest negotiations with China continue without a trade agreement – the deeper the farmers – the greater the pain they will feel.

Like corn farmers, soybeans also pointed out the high prices and high costs. Since its peak in 2022, Soybeans prices About 40 % decreased.

The group said: “Soybeans are exposed to severe financial pressure,” the group said. “Prices continue to decline, and at the same time our farmers pay much more for inputs and equipment. Farmers in soybeans cannot survive in a long business conflict with our largest customer.”

The farm entered, and the conditions of credit are deteriorating

The bleak picture of the agricultural economy echoed before The latest federal reserve survey From the financial conditions of the farm. I found that the weakest income has reduced the liquidity of farmers, which enhances the demand for financing.

Meanwhile, credit conditions deteriorated with nearly 30 % of the respondents in the Federal Reserve areas in Chicago and Kansas City Fed in the provinces of low payment rates against last year, while the share of the Minneapolis Fed area was about 40 % and the St. team was the team St. Louis Fed 50 %.

Certainly, American farmers are scheduled to receive great help. After Trump launched his last trade war earlier this year, administration and legislators began talking about a Plan of rescue for farmers in AprilSimilar to how they received a rescue plan during Trump’s first term, when it launched a trade war against China.

The one beautiful bill, which was signed in July, included about 66 billion dollars of spending that focuses on agriculture. The vast majority, about $ 59 billion, is intended for the safety network improvements on the farm, According to the US farm office union.

In addition, other commercial deals should see Trump negotiating countries elsewhere in Asia that increase the purchase of American crops.

For example, Indonesia and Bangladesh have agreed to promote purchase under their agreements, The sources told Reuters Last week, Vietnam, the Philippines and Thailand may increase grain purchases.

“There were fruitful aggressive discussions that provide an opportunity for the United States to enhance its access to the markets in our region,” Timothy Luo, the regional director of the US Soy Export Council for South Asia and Oceania, told Reuters.

“We expect to increase the demand for American products such as soy and other American agricultural exports to Southeast Asia.”

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