Source: Fortune
Summary
The U.S. farm economy is facing a new threat, a rare “Super El Niño” that could devastate the industry. Weather forecasters warn of a multi-year drought that could threaten crop yields and water supply, leading to a “mini-Dust Bowl”. Farmers are already struggling with higher input costs, lower crop prices, and increased financing costs due to the Federal Reserve’s rate-hiking campaign. The Trump administration has provided support, but farm bankruptcies are still on the rise.
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The numbers tell one story.
Farmers are facing a perfect storm of higher costs, lower prices, and drought. The Super El Niño threatens to make things worse, with AccuWeather warning of a multi-year drought. The situation is alarming, with the potential for a “mini-Dust Bowl”. The Trump administration’s support may not be enough to stem the tide of bankruptcies. The Federal Reserve’s rate-hiking campaign has made financing more costly, with interest rates for farmers with loans over $100,000 nearing 7%. The situation is critical, with the potential for long-term damage to the farm economy.
The announcement sounds familiar, as the farm economy faces another crisis.
Author: Evan Null
