As Wisconsin farmers brace themselves for another challenging season, diesel prices have soared, creating a financial storm that many struggle to weather. Joel Greeno, a farmer from Kendall, Wisconsin, finds himself at the forefront of this economic battle, burdened by debt and contemplating bankruptcy.
Greeno operates a 160-acre farm, where he cultivates organic corn, hay, and small grains. To manage the mounting costs of equipment and transportation, he has resorted to substantial credit card debt, a strategy that has resulted in legal actions from creditors. The escalating diesel prices, crucial for farm machinery, add yet another layer of difficulty.
“It’s going to make things extremely challenging this year,” Greeno shared with WPR’s “Wisconsin Today”.
The cost of diesel has surged dramatically, doubling in many areas of Wisconsin. This spike is attributed to geopolitical tensions, including the war in Iran and the conflict between Russia and Ukraine. According to AAA, prices have recently climbed from approximately $5.30 to over $6.50 per gallon, exacerbated by refinery issues in Illinois and Indiana.
Greeno, who serves on the board of Family Farm Defenders, underscores the impact of these costs on farmers’ already thin profit margins. “When you’re talking cents a bushel on your corn crop that you hope is profit … for a lot of guys, this may just be the end,” he remarked.
Randy Romanski, Secretary of the Wisconsin Department of Agriculture, Trade and Consumer Protection, reports a noticeable increase in farmers seeking financial counseling and transition planning services. He attributes this trend to rising fuel prices and tariffs, such as those on steel affecting canned produce.
Farm bankruptcies in Wisconsin have seen a slight uptick for the second consecutive year, following a pandemic-induced lull. However, the statistics may not fully capture the scope of the issue, as Greeno notes that some farmers opt to sell their properties at auction rather than filing for bankruptcy. “(You) just book an auction … you sell it, you take what you get, and you just suffer the consequences,” he explained.
Amid these challenges, Greeno has pondered selling his farm but is deterred by offers that would divide the land into smaller parcels, a prospect he finds disheartening as agricultural land continues to fragment across the state.
The stakes for farmers extend beyond financial ruin, with suicide rates among farmers rising over the past few decades. Romanski highlights the availability of the department’s 24/7 Wisconsin farmer wellness helpline at 888-901-2558, offering a lifeline to those in distress. For financial consultation, transition planning, mediation, or arbitration, farmers can reach the Wisconsin Farm Center at farmcenter@wisconsin.gov.
