Along with the escalation of riots in many places in the United States, the original hits in many areas of the United States in the pandemic have been further intensified, which makes the scene of the Great Depression in the United States in the early 1930s is recurring. Among them, the impact on the American agricultural sector and American farmers is very obvious. Because, in the past two years, they have suffered from the pain caused by the loss of market customers, and today it seems that the sight of American farmers exchanging agricultural products for dollars may face a further end.
A new development in the matter is that the Russian Satellite News Agency reported on June 1 that according to Bloomberg News, Bloomberg quoted people familiar with the report as saying that Chinese related buyer buyers may stop buying certain US agricultural products, including soybeans. The foreign media also quoted people familiar with the situation as saying that some Chinese buyers also cancelled some US pork orders. Obviously, for American farmers who have fallen into bankruptcy in the past two years, this is nothing short of frost.
It is worth noting that between 2018 and 2019, a total of 1093 U.S. farms went bankrupt. Among them, in 2018, a total of 498 farms in the United States went bankrupt. Throughout 2019, a total of 595 farms in the United States went bankrupt, an increase of nearly 20% over 2018, the highest in eight years. In particular, the number of bankrupt farms in the Midwest of the United States is the highest since the financial crisis. Analysts believe that once the patronage of major global buyers continues, the phenomenon of bankruptcy of American farms will become more serious.
Unsurprisingly, another development of the matter is that John Newton, chief economist of the American Farm Bureau Federation, recently stated in the "Feed and Grain Blog" that in the past as of May this year In 12 months, 627 US farms filed for bankruptcy, an increase of 23% from the same period in the previous 12 months. Although the US farm bankruptcy data has not been released this year, through this trend, it is almost certain that the total number of US farm bankruptcies in 2020 may still be higher than 2019.
It is reported that the overall sentiment of American farmers has fallen to the lowest level since 2018. The successive years of bankruptcy and the inability of the US economy to cope with the pandemic and the riots in many places at this time have made American farmers overwhelmed. They tasted the losses caused by the loss of large global customers in advance. The phenomenon includes that Chinese buyers canceled US hog orders in some months in 2019. For example, according to the US Department of Agriculture, Chinese buyers canceled 53 tons of US pork orders in February and canceled in March. 999 tons of US pork orders, April 214 tons of US pork orders were cancelled. In mid-May, another 3,247 tons of US pork import orders were cancelled, which means that during February-May 2019, Chinese buyers canceled at least 4,513 tons of US pork orders.
At that time, a huge amount of American pork and a series of meat products were piled up and nowhere to be placed. There was a backlog of about 2.5 billion pounds of frozen meat, and the cold storage of major meat products companies has already accumulated. This inventory has hit the highest record in the US pork and related industries in recent decades. At the same time, due to differences in eating habits, American pork, pig offal, trotters, chicken feet, Asian carp, silver carp, fish head, duck neck, duck intestine, duck liver, duck palm, chicken gizzard, tripe, The "garbage" in the eyes of Americans such as lamb and so on also faces the hidden danger of export being blocked, unable to turn waste into treasure, and stink. According to data from the American Meat Export Federation, in the event of the loss of the pork market at 76 cents per pound, if no other buyers can be found, the pig offal will be sold in the United States at about 18 cents per pound. This may cause the US pork industry to lose US$860 million.
And this is just the tip of the iceberg that American farmers have lost in the past two years. Taking planting as an example again, in the past two years, there have also been U.S. sorghum ships that have also turned around in the Pacific Ocean; a large number of soybeans in the United States have been trapped in the ground, nowhere to be stored and hoarded, and American barns have burst. These phenomena have caused great losses for American farmers. Take American soybean farmers as an example. Ohio-based soybean and corn farmer Fred Yoder once said that farmers throughout the Midwest of the United States face “difficult times”, “I’m almost losing $100,000”. "We are uncertain about the future, how will the market change in the future?
Reuters quoted columnist Braun a few weeks ago as saying that US farmers such as US soybean farmers may be permanently injured because the US agricultural sector and US farmers underestimated the ability of the world's largest market and large customers. (Finish)
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