Tidbits, Chapter 12 Bankruptcy & Taxes 7/26/26
- Wright team
- 43 minutes ago
- 5 min read
Tidbits
Grain producers around the world have had difficulty making a profit the past three years. Several countries have a large increase in farm bankruptcies in 2026.
While the current financial problems are not nearly as widespread as they were in the 1980’s, for operations in financial stress, that fact does not make them feel any better.
In the 1980’s, from a debt to asset perspective, there were tens of thousands of farmers “underwater.” They could not borrow operating capital to put out their crops and their real estate creditors were pushing and some were harassing them to pay their debt service (principal and interest).
In the 1970’s, the mindset was agronomic technology had maxed-out crop yields and the world population growth was on a fast track to starvation. However, between mid-1980 and late 1982, it was obvious yields had not topped out in the 1970’s as “experts” stated at the World Food Conference in Rome in November 1974. AIDS and abortion on demand drastically slowed population growth. Grain and soybean prices fell way below the cost of production and stayed there except during the three drought years when production was short.
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