American farmers already plagued by a near biblical parade of misfortune that includes years of low prices and a trade war with China are now grappling with record Midwest rain that will likely prevent a large portion of this year’s crop from even getting planted.
The troubles have created the worst farm crisis since the 1980s, when oversupplies and a U.S. grain embargo against the Soviet Union forced thousands of farmers into bankruptcy, experts say.
“It’s not the 1980s, but it’s as close as we’ve been,” says John Newton, chief economist of the American Farm Bureau.
While some farmers have been shutting down or selling to larger competitors for years amid thinner profits, analysts say 2019 will bring a more dramatic shakeout.
“This is more than a cyclical thing,” says Gary Schnitkey, an agricultural economist at the University of Illinois. “It’s a series of events that we’ve never seen come together. … It’s going to be a blow to everyone’s financial position.”