Farmers Are Facing Economic Crisis
Farmers across the country are facing a crisis. Independent small and medium sized farms are dealing with daunting economic and financial circumstances, with each passing day becoming increasingly dire.
Through recently enacted tariffs and the corresponding reactions by other countries, the federal government shutdown, and the ever-increasing market consolidation by Big Ag have wreaked havoc on our markets, these actions have resulted in commodity prices plummeting far below the cost of production, farm bankruptcies rapidly rising, and farms disappearing. Farmers are on the brink of collapse and cannot wait for support any longer. Without swift intervention from the government, every farm operation in Michigan, and the United States, is at risk.
Farmers are losing out on crucial funds from the U.S. Department of Agriculture at the very height of harvest season because of the lack of a federal budget and the government shutdown. Trade wars are driving down commodity prices for crops like corn, wheat, and soybeans because other countries are taking their business elsewhere.
The number of farms in the U.S. has been declining for decades, with more than 140,000 farms going out of business between 2017 and 2022. That decline continues today as farmers face record-low commodity prices and shrinking international markets. For the first time in more than two decades, Chinese importers have not purchased American soybeans this year, cutting off U.S. producers from their largest export market and further straining rural economies.
Bob Thompson, president of the Michigan Farmers Union (MFU), said: “The idea of these knee-jerk reaction tariffs across the board are of great concern to us. The cost goes up to operate, the value of the product goes down, and we’re caught in the middle. The farmers are caught in the middle. We’ve got to stop the bleeding. We’ve got to stop the uneven application of tariffs and the willy-nilly positions on trade.”
Relief to farmers must also come with reform. We need real change to tackle the structural issues that plague the farm economy and squeeze farmers from all sides. Economic assistance should be delivered in a way that is more than just a one-time fix – it must address the structural issues in our agricultural markets.
These structural issues not only hurt farmers, but the entire country. The rising consolidation that we’ve seen in the agriculture sector since the 1970s has meant that corporations get wealthier and more powerful, while folks purchasing food experience rising costs. Because there are fewer farms, that means less market competition –– which is part of the reason why beef prices in Michigan have risen more than 30 percent in the past year alone.
Direct aid needs to go to independent farmers and ranchers, NOT factory farms. Large, multinational corporations should not be eligible for this assistance, unlike in previous trade-assistance packages. The government must investigate and break up the corporate monopolies that are driving up input costs and prices across the supply chain, harming both farmers and all of us who rely on them. We must also invest in and prioritize domestic market growth, including local and regional opportunities, to offset the loss of overseas markets.
Our elected officials must stand up to these disastrous policies that are pushing independent farmers and ranchers out of business and decimating rural communities. Tell Congress that farmers need immediate economic assistance. Click here to take action and send a letter to your congressional representative.
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Levi Teitel, Communications Coordinator — Progress Michigan
