AEI: Farm bankruptcies do not justify more farm aid
The increase in farm bankruptcies is so small it does not justify an increase in farm aid, Vincent Smith and Eric Belasco, scholars at the American Enterprise Institute, have written in a paper published on the institute’s website.
“First, farm bankruptcies are extremely rare events, so small changes in their numbers can appear very substantial,” Smith and Belasco wrote.
“For example, in 2018, 498 farms filed for bankruptcy out of approximately 2 million U.S. farms. In 2019, the number of bankruptcies ‘exploded,’ increasing by almost 20% to 595. This meant that 0.03% of all farms — i.e., one in every 3,300 farms — filed for bankruptcy.
“The increase of 97 farm bankruptcies out of a total of 2 million farms is effectively a statistical blip.”
–The Hagstrom Report
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