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"..have to borrow before every planting" This is not limited to just small farms. In Western Australia, farm debt has been growing 8% per annum since 2000. The average farm size here is ~3500ha (8650acres).

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I'm curious if Australia is a special case because of the drought [1]. It began in earnest in 1995 and was named record setting by 2003 so I can imagine the farms had to do a lot more borrowing and refinancing at unfavorable terms in order to make it through more than a decade and a half of very low rainfall. According to [2] the Australian government provided $4.5 billion in exceptional circumstance assistance which included monetary payments and interest rate subsidies. Even with that assistance I would imagine that the drought hit Australian farmers really hard. I tried looking at the agriculture.gov.au site for import statistics but couldn't easily figure out if agricultural imports grew during that time period, and whether that hurt the domestic farms as well.

It'll be interesting to see if California farms' debt balloons like this too as they have to borrow more and more to pay for water rights and infrastructure like wells. California is basically the US's fertile crescent so maybe there will be a lot more subsidies and federal assistance just to maintain food security as a national strategic goal.

[1] https://en.wikipedia.org/wiki/2000s_Australian_drought

[2] http://www.theage.com.au//breaking-news-national/minister-de...

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