Despite a $7 billion injection from the Department of Agriculture to mitigate losses caused by the coronavirus pandemic, The Wall Street Journal reports that more U.S. farmers are filing for bankruptcy.
Why it Matters: Farmers are fighting for their livelihood as commodity values are plummeting, supply chains are being cut off, and markets are closing around the globe. The agricultural industry is now one of the industries hit hardest by COVID-19.
- About 580 farmers declared bankruptcy in the last 12-months — 8% more than a year earlier.
- California’s agricultural industry, the nation’s largest, could lose as much as $8.6 billion, according to a study commissioned by the California Farm Bureau Association.
What’s Next: The Coronavirus Food Assistance Program included $16 billion in direct payments to farmers and ranchers and $3 billion in mass purchases of dairy, meat, and produce distributed through food banks.
According to the University of Missouri’s Food and Agricultural Policy Research Institute (FAPRI), the Trump administration is now expected to distribute a record $33 billion in payments to farmers this year.
Get the Full Scoop: More Farmers Declare Bankruptcy Despite Record Levels of Federal Aid