Monday, December 26, 2016

What Debt In Chicken Farming Says About American Agriculture

I feel there is a Day of Reckoning in farming in the USA.  Over burdened with regulations and rising interest rates causing land values to plummet.  This reeks of a disaster that will once again decimate our farming community.

I look for mass starvation in the USA if this continues.
Poultry farmers are over-leveraged on average compared to other farmers. In 2007, poultry farmers had the highest DRCU of any sector in agriculture, at nearly 70%. This means that poultry farmers are have already leveraged nearly 70% of their capacity to pay back debt, just to keep the business running. This calculation does not include their livelihood: feeding their family, paying for their own home, etc. Close followers in high DRCU were hog and dairy farmers, industries that are increasingly adopting contract models similar to poultry. In the same year, according to research by USDA’s Economic Research Service, the poultry sector also had a larger than proportional amount of insolvent farms, compared to other sectors.

So all those bright and shiny new chicken coups and farms brought on by new idiotic regulations created by people who know shit about farming and paid with borrowed money will CRUSH the American poultry farmer.


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