Only now the consequences of the past hot summer in Germany are felt. Lower incomes and higher costs due to high heat are the main reasons for the growth of bankruptcy among German farmers.
Extreme summer drought in 2018 An analysis by Crifbürgel, an information service provider, shows that the effects of the hot summer also had a negative impact on agricultural sustainability.
From January to October 2019, 114 agricultural companies were to file for bankruptcy, which is 23.9% more than a year ago (October 2018: 92). In general, Crifbürgel expects up to 140 bankruptcies in the agricultural sector over the year, which is about 22% more than in 2018 (114).
According to analysts in the field of agriculture, the average credit index also has a higher score of 2.44 than the economy as a whole (2.71).
Direct speech: “Since bankruptcy statistics mainly reflect the past, the effects of last summer are visible only now, with lower incomes and higher costs due to the intense heat, which is the main reason for the rapid bankruptcy in agriculture,” explains Ingrid CEO Crifbürgel Riel current numbers.
However, despite the development of insolvency in 2019, agriculture, as a rule, is financially stronger and more stable than the economy as a whole, as evidenced by the analysis of financial data (as of 11/19/2019). Compared to November 2018, the number of companies at risk of insolvency decreased by 3.9%.
In total, 4,856 households are currently considered financially weak and therefore have an increased risk of insolvency. In November 2018, there were 5049 of them. However, in the same period, the opposite trend was observed in the economy. Here, the number of companies with weak credit ratings rose slightly by less than 2% to 309,076.
- Amid tensions resulting from a trade war between President Donald Trump and China, as well as abnormal weather, bankruptcies of American farms rose 24% to their highest level.
- Earlier, we wrote about the record heat in Europe, which caused a significant load on various cultures.
- 11 temperature records of global warming were recorded, which became fatal for farmers and humanity as a whole.
