Is the USA No Longer an Agricultural Powerhouse?

[btresist]

@DrBob2

If production is low then they won’t have much to sell. If production is high then prices drop.

And during a trump-manufactured trade war, farmers have lots to sell that no one outside the country wants to buy. Domestic prices drop, farmers take a loss, and bad stuff happens. I strongly suspect that over the next year farm debt will increase as will US farm bankruptcies, both of which have shown a rising trend in recent years due to tariff wars and rising global competition. 2024 Farm Bankruptcies Highlight Worsening Farm Credit | Market Intel | American Farm Bureau Federation

@DrBob2

That article was from 2019.

Exactly, we’ve been down the road of trade wars on agricultural commodities. We know the consequences to US farmers. It leads to farmer bankruptcies and suicides. No reason to expect something different this time around.

@DrBob2

Just a few years later (with tariffs still in place, IIRC) we read about record levels:

You apparently missed that a major event occurred in Ukraine that created a global grain shortage in 2022. The war in Ukraine triggered a global food shortage

[DrBob2]

@btresist

Exactly, we’ve been down the road of trade wars on agricultural commodities.

And has been pointed out several times, the long-term trend is for using our increasing crop production for fuel rather than food exports.

@btresist

It leads to farmer bankruptcies and suicides.

Not to be too flip, but those suicides in 2019 were certainly premature, what with prices soon to reach record levels.

DB2

[btresist]

@DrBob2

And has been pointed out several times, the long-term trend is for using our increasing crop production for fuel rather than food exports.

This is an example of big government creating a market for domestic farmers because our agricultural products are facing increasing global competition. The environmental argument for biofuels grows weaker every day as solar, wind, and EV technologies improve. Alternative Fuels Data Center: Biodiesel Laws and Incentives in Federal

@DrBob2

Not to be too flip, but those suicides in 2019 were certainly premature, what with prices soon to reach record levels.

Again, those record levels were due to a Black Swan event, the Ukraine war, and was a temporary jump. The long-term trend is declining prices as global competition increases:

Can’t blame farmers for not anticipating a Black Swan.