America’s farm sector has been devastated by ongoing trade wars with countries such as China, low commodity prices, foreign competition for markets, higher input costs, weather and other factors.
The already bleak outlook for many farmers is now worse due to the government shutdown which is entering Day 13, farmer P.J. Haynie told Talk Business & Politics.
Haynie, a fifth-generation farmer whose family owns 9,000 acres in Virginia and another 5,000 acres of cropland in the Arkansas Delta, said it’s possible his family will shutter their operations by the spring if conditions don’t improve.
“I’m selling commodities at the same price my grandfather did 40 years ago. … I’ve never seen as many unplanted fields in the Delta as I’ve seen this year,” he said. “We’re facing a ‘farmaggedon.’ … No farms, no food. It’s that simple. Do you want to get your food from China?”
When commodity prices are low, many farmers will store grains such as rice on the farm and wait for the prices to improve the next spring or summer. To make ends meet, farmers will often take out Commodity Credit Corporation loans through the U.S. government and use the stored grain as collateral, Haynie said.
‘TURNED THEIR BACKS’
When prices improve, farmers pay off the loan. With the government shutdown, there is no way to get those loans, he said.
Another ongoing issue has been President Donald Trump’s trade war with China. It’s been reported that the Chinese have not bought American produced soybeans this year and have been pouring money into countries such as Brazil and Argentina to help establish soybean farms in those countries.
Argentina’s economy had been in a freefall, but the Trump administration recently authorized a $20 billion currency swap with the country replacing pesos with U.S. dollars which has helped to stabilize the country’s economy. Haynie said farmers are getting hit “from both sides” as the U.S. stabilizes the economy of a foreign government that is rapidly eating up shares of the international soybean market – replacing American farmers.
“This administration came onboard and promised to help farmers. They’ve turned their backs on farmers,” he said.
LOSS OF USAID
Another problem for some row crop farmers is the end of the USAID (U.S. Agency for International Development) program, Haynie said. The program, purchased billions in U.S. farm goods and other products and delivered them to developing nations and disaster areas, was ended by the Trump administration. When crops such as rice are milled, some of what is produced isn’t ascetically pleasing for customers but there’s nothing wrong with the rice. USAID would buy this rice and then deliver it to food insecure people around the world.
Now, that option is gone, he added.
Tim Wells, an agriculture loan officer and sheep farmer in Paragould, said the livestock sector has fared better during this farm crisis, but the shutdown is having impacts. Disaster relief was declared for livestock farmers due to the drought last year and the hurricane that hit. The signup for relief extends through Oct. 31, but only a few have signed up, he said. Now, those offices are shuttered.
“We have no way to sign up,” he said.
Wells said the agriculture economy has been in turmoil for several years. He said if something doesn’t change, as many as 30% of all farms in Arkansas could be shuttered by next spring.
Many of his farm customers are busy with the harvest right now, but soon they will have to turn their attentions to the business side of the farm. Wells wasn’t sure how many of his customers will opt to not plant crops in 2026.
“It’s hard to know what to anticipate,” he said. “There’s no one sitting in those offices. It’s really hard to plan for sure.”
According to an Oct. 6 report from the Farm Bureau, the U.S. has lost more than 140,000 farms from 2017 to 2022, and an additional 20,000 in the previous two years.