More MN farmers on verge of foreclosure this year than last 3 years combined

(FOX 9) - Minnesota farmers are getting squeezed by higher costs and a trade fight with Canada, and some are turning to a state mediation program to keep their farms.

Kanabec County farmer feels the strain

What we know:

Peter Ripka comes from generations of farmers.

"I grew up on the farm," he told FOX 9.

He once owned 700 acres, farming corn, soybeans, hay and cattle.

His farm is now a fraction of that. He owns beef cattle and processes a few per year for his family.

Local perspective:

In 2018, a bad back injury and a volatile dairy market left Ripka on the verge of foreclosure.

"You just become depressed," said Ripka. "And depression can lead to other things that just compound everything … I’m lucky I was able to push through."

At risk of losing his farm that year, Ripka found the farmer-lender mediation program.

Asked where he would be without it, Ripka said, "Probably still in debt."

The backstory:

Voted into state law in the 1980s, the program has required banks and lenders to enter mediation with farmers before foreclosing or repossessing property.

Gary Wertish of the Minnesota Farmers Union said, "It doesn't take any rights away from the bank, but it slows the process down and gives them an opportunity to work together."

State Department of Agriculture data shows 90% of farmers who use the program ultimately avoid foreclosure.

"I hope other farmers know farmer-lender mediation is there," said Ripka. "At least save the farm."

Higher costs reshaping Minnesota farms

Dig deeper:

The Minnesota Farmers Union says more farmers have filed for mediation this year than the last three years combined.

Minn. Ag Comm. Thom Petersen said opening the monthly mediation report is difficult as farm finances tighten.

"It's one of the hardest things I open each month is the mediation report," said Thom Petersen.

According to Petersen, diesel is up 40% from this time last year and fertilizer is up 15% to 20%.

"Equipment costs. Tariffs. Loss of markets. There's just one thing after another. Really a lot of uncertainty is what our farmers are facing right now," said Petersen.

Why you should care:

Wertish said previous tariffs have already driven up costs for farm equipment and fertilizer, while also cutting into what farmers can get when they sell their products.

"It's putting downward pressure on our prices that we are able to sell the products for. So we're getting squeezed on both ends," said Wertish.

Canada tariffs deepen farm worries

Big picture view:

Canada announced retaliatory tariffs on $20 billion worth of U.S. goods after President Donald Trump's 50% tariffs on Canadian imports took effect, earlier this fall.

Minnesota exports about $5.5 billion in goods to Canada each year, and Wertish said Canada is the state's No. 1 trading partner.

What we don't know:

The Trump administration recently allocated $8 billion to offset high diesel prices during harvest. It’s not yet clear how much it will help Minnesota farms.

PoliticsAgricultureMinnesota