Trade wars have led to the highest number of US farm bankruptcies since 2020

Several years of low grain prices and rising production costs, including high interest rates, have led to a crisis among small U.S. farmers, exacerbated by trade wars and a sharp decline in demand from China.

In the first half of the year, bankruptcies among small farmers and fishermen reached their highest level since 2020. According to the US Bureau of Labor Statistics, farm debt will reach a record $561.8 billion this year.

According to Bloomberg, producers of soybeans, corn, and pork have been hit hardest in recent years, as China has begun buying these products from competitors in Brazil and other Latin American countries, although before Trump's first presidential term in 2017, American products dominated Chinese imports.

At the same time, the US IFA predicts an increase in net farm profits in 2025, but this will be mainly due to government support, while the profitability of soybean and corn cultivation will continue to fall.

Recall that Brazil set a record for soybean shipments to China in May. In the second half of the year, soybean exports from Brazil are expected to grow by 85% and reach 64.95 million tons.