GEORGIA SEES SPIKE IN FARM BANKRUPTCIES

By Samuel Rivers

According to the Farm Bureau, Georgia saw 37 farms file for bankruptcy in the past year, 12 more than last year.

William Tyson, a Bulloch County agriculture and natural resources agent, said that there were various issues that farmers face that could be to blame with the spike, not the least of which being the ongoing trade war with China.

“We’ve had several tough years, about the last three or four years,” said Tyson, “whether it be weather issues, tariffs, and low commodity prices, and also we’ve had an uptick in input cost.”

Each of these are problems on their own that farmers have been dealing with for years, but with the tariffs introduced throughout the trade war this year, farmers have lost one of the biggest buyers of their goods: China.

Tyson said that China buys roughly 40% of some crops such as cotton. Without china buying those goods, farmers suddenly find themselves gathering and storing product that they cannot sell entirely for the price that they need to get over the cost it took to grow the crops due to a lack of demand from being oversupplied.

“We’ve got some overstock of cotton. We’ve also got overstock of peanuts,” said Tyson, “so when you’ve got high stocks, you’ve got to use those before you get into current crop yields, and it’s basically supply and demand.”

One potential solution to the issue of overstocking could be for farmers to diversify their crops and grow products that are not so overstocked. However, this is not often a viable option for farmers due to how much investment it takes to grow particular crops such as peanuts or cotton.

“We’re mostly set up for cotton and peanuts,” said Tyson, “that’s the equipment we have, that’s everything we have… peanut pickers only pick peanuts, cotton pickers only pick cotton. Looking at about $150,000 of equipment on a peanut harvester. A new cotton picker is about $750,000.”

This means that farmers that have cotton or peanut farms are likely too invested in growing those crops to simply grow something different, as they would not be able to use the equipment they already have in order to do so.

Former farmer, Isera Gray, agreed, saying that “the reason why farmers are setback in critical condition today is that due to the price of equipment and the low price of commodities that they produce.”

Though President Trump has promised a stimulus package to farmers, Tyson said that many farmers’ best hope may be to negotiate and improve their relationships with their lenders.