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100s Of Millions Of Dollars In Crops Destroyed By Flooding

Scorpio

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#1
100s Of Millions Of Dollars In Crops Destroyed By Flooding, And Farmers Are Being Told “There’s Nothing The U.S. Government Can Do To Help”
April 7, 2019 by Michael Snyder

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This is the worst economic disaster for U.S. farmers in modern American history. Our ongoing trade war with China had greatly depressed prices for wheat, corn and soybeans, and so farmers were storing more crops on their farms than ever before in early 2019. And then the floods came. The water moved so fast that the vast majority of the farmers in the affected areas could not have moved what they had stored even if they wanted to, and the scale of the losses that these farmers have suffered is starting to become clearer. According to UPI, “hundreds of millions of dollars in crops” that were destroyed by the flooding were not covered by insurance…

Hundreds of millions of dollars in crops destroyed in Midwestern floods this month were not insured, farmers say. And the losses could leave many without sufficient income to continue farming.
“This uninsured grain issue is really starting to affect people,” said Jeff Jorgenson, a western Iowa corn and soy grower whose farm flooded when the Missouri River spilled over its banks March 12.​
Without an extraordinary amount of assistance, there are thousands of farmers that will never be able to come back from this.
One fifth-generation farmer that was interviewed by Fox News said that about 7 million dollars worth of grain was destroyed in his county alone…
Dustin Sheldon, a fifth-generation grain and soybean farmer, watched in horror as the floods that devastated the Midwest began to recede and he could assess the damage to his crops.
He said the record-breaking floods caused about $1 million in losses for his family farm.
“We figured that there is roughly $7 million worth of grain sitting in these grain bins here just in our county alone that is either destroyed or inaccessible right now that we won’t even be able to get to or sell,”
he said. “Financially, there’s a lot of farmers that can’t come back from that and they may be out of business.”​
According to government regulations, when stored crops get flooded they must be destroyed.
And unfortunately, the government also doesn’t have any sort of a program to cover those losses. In fact, USDA Under Secretary Bill Northey told Reuters that “there’s nothing the U.S. government can do to help”
Hundreds of farmers may be out of luck trying to recuperate losses after last month’s historic floods in the Midwest. Millions of bushels of grains were destroyed in more than 800 on-farm storage bins – mostly in eastern Nebraska and western Iowa – and U.S. Department of Agriculture (USDA) Under Secretary Bill Northey recently told Reuters that, under current laws and disaster aid programs, there’s nothing the U.S. government can do to help.​
Of course Congress could pass a law to change all that, but right now that is not happening and it does not appear likely to happen.
This is yet another example that shows who we send to Congress really matters. If I had won my race for Congress, I would be endlessly causing havoc until our farmers got the emergency assistance that they desperately need.
Because as it stands, thousands of farmers that have been financially ruined by this flooding are going to be forced out of the profession forever.
For 71-year-old farmer Bruce Biermann, it looks like the end has come after the floodwaters destroyed more than $100,000 worth of his stored crops…
The two grain bins on Bruce Biermann’s farm near Corning, Missouri, could not withstand the strong currents of the Missouri River.
With four feet of water pressing from the outside and grain swelling from moisture inside, the bins burst.
At 71, Biermann is looking at more than a $100,000 loss.
Because of the trade war, he had been storing 12,000 bushels of corn and 8,200 bushels of soybeans until prices went up again.
Now all of that hard work has been washed away, and no help is on the horizon.
33-year-old farmer Travis Green has a similar story
Travis Green, 33, who operates farms in both Kansas and Nebraska, stored 25,000 bushels of yellow corn in a pair of grain bins in White Cloud, Kansas, near the Missouri River.
One of the bins “literally just blasted open,” after it filled with floodwater and the other was uprooted— destroying an estimated $100,000 worth of corn. On top of that, he’s unsure whether he’ll be able to plant anything this year because of the water damage.​
Even before the floods came, U.S. farm incomes had already sunk to a 12 year low. America’s farmers need our help more than ever, and yet Congress has chosen to abandon them.
Overall, AccuWeather is now estimating that the total amount of economic damage from all of this flooding will reach 12.5 billion dollars…
AccuWeather estimates the total damage and economic loss caused by record-breaking flooding in the Midwestern U.S. this spring will total $12.5 billion, based on an analysis of damages already inflicted and those expected by additional flooding, as well as the lingering health effects resulting from flooding and the disease caused by standing water.​
Personally, I think that number is too low, but we will see.
And remember, a lot more flooding is still on the way. Just check out what one expert is saying
“We’re not done. There is what amounts to a wall of water that will cross the state of Missouri, by way of the Missouri River, and meet a rapidly rising Mississippi River,” Dr. Hurburgh says.
The snow in Wisconsin and Minnesota is melting this week, and flooding is expected in northern Illinois and southern Wisconsin. That’s all going to end up in the Mississippi River, at a point, he says.​
In addition, a lot more rainfall is coming too. In fact, powerful storms are set to dump up to 6 inches of rain across the southern portion of the country through Monday night
In addition, the prolonged period of wet, stormy weather will only exacerbate and worsen the ongoing flooding issues on the Mississippi River and its tributaries.
Through Monday night, the highest rainfall totals of 3 to 6 inches are forecast to extend from eastern Texas and western Louisiana into southeastern Arkansas, northern Mississippi and western parts of the Tennessee Valley.​
Overall, at least a million acres of U.S. farmland were covered by water by the recent floods. It is a disaster that we will be talking about for a very long time to come.
Unfortunately, time is not on the side of the thousands of farmers that have been financially ruined by this great tragedy.
Congress needs to act, and they need to do so quickly.
About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.


http://endoftheamericandream.com/ar...res-nothing-the-u-s-government-can-do-to-help
 

Scorpio

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#2
one thing to remember in this,
if true, and you are storing finished grains on your property holding for better prices,

then you are 'speculating', and all the inherent risks that come with that.

and to be clear, we all have been watching the winter, the snowpack, all the above. We up here have known for sometime the spring thaw was going to be quite monumental for low lying areas.

if you had millions in grains sitting somewhere near any water zone, would it not be prescient to pay attention to such things? Maybe have a earthen moat around your storage? Maybe using elevated storage? Etc.

and just for the heck of it, if you just happen to have $7M lying around in grains, then maybe it isn't our problem to start with? Maybe it is a monkey see monkey do thing from the coffee shops?

just some alternative thoughts to this, reasonable questions,
not looking to crawl up in someones grille over it
 

glockngold

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#3
Agreed.
Once you have millions in assets, it isn't the government's business to rescue you any more than say... a car company...
 

Someone_else

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if true, and you are storing finished grains on your property holding for better prices,
then you are 'speculating', and all the inherent risks that come with that.
That is insightful. If a farmer grows crops and sells them, that is normal business. Some years are great, some suck. But you are right that this farmer was speculating. He took the risk, hoping that the price would go up. Gambling may pay or it may cost. Roll the dice. But I have no admiration or sympathy for the gambler.
 

D-FENZ

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#5
What difference does it make to anyone else if a farmer lost the grain speculating on it, holding it to feed his livestock or just holding it to look at it? And what gives anyone else the right to make the moral distinction? Maybe you should mind your own business.

Unless of course the guy is standing there with his hands in our pockets wanting us to pay for it.

The questions and moral hazard arises when congress thinks they have to step in and hand out our money to pay for someone elses loss- for whatever the reason. If someone else is going to pay for losses, why bother taking care of it? It's a very slippery slope. Socialism by any other name.
 

Alton

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#7
This is going far beyond grain losses. Many more crops beyond the US have been getting destroyed. Meat prices due to livestock losses are soaring. Now we are having the Wesley "Bomb Cyclone" winter storm. I repeat...NOW. It's true, government can't do anything. I do hope Al Gore is hearing this "inconvenient truth".

The following video is from "Ice Age Farmer"...Canuck dude who watches agricultural changes/earth changes globally as it affects farming. This is Part 2. Following will be the 23 minute Part 1


 

Scorpio

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#8
no question, grain shorts = less feed for animals, stands to reason,

but remember too, the best cure for low prices is low prices

something always comes around, and the worm turns

the real issue is people extending themselves, and taking excessive risks during times of excess, and not being prepared for times of woe.

buying tractors and trinkets, all on credit, betting on the come

the good ones only buy as absolutely needed and don't overextend themselves. They don't get caught up in the shiny object syndrome. They go out and maintain their stuff.

Time works in their favor as others come and go, paying excessive prices on their road to ruin. While the more clever are still there, paying down land and equip in the good times, and buying in the bad times.
 

brosil

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#11
I'm going to put my prediction here. Farmers won't get paid anymore for their crops that they do manage to produce.
 

D-FENZ

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#12
I'm going to put my prediction here. Farmers won't get paid anymore for their crops that they do manage to produce.
Anymore or any more? 'Any more' is brilliant and my money is with yours. And that underscores the slippery slope.
 

brosil

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#13
Anymore or any more? 'Any more' is brilliant and my money is with yours. And that underscores the slippery slope.
It's a typo but I see what you mean.