Bloomberg puts it bluntly - “It’s a Very Bad Day for U.S. Farmers”, after the latest report was issued by the U.S. Department of Agriculture (USDA). After declaring that soybeans had their “worst week ever” in early January, the department forecasted that U.S. soybean exports will remain below their pre-trade war levels until 2026/2027. Compounding the bad news, the Federal Reserve Bank of Kansas City issued a warning that farm incomes will be weak for the beginning of this year, resulting in lenders tightening credit.
Conditions have been on a downward trajectory for a while from multiple years of bumper crops that have keep the sector in a state of oversupply, however, the trade war with China has struck a serious blow, causing some farmers to decide not to even plant a crop due to the tariffs.
Add to this a tight labor market, and U.S. farmers are facing an uphill battle on multiple fronts.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.