What’s left in your pocket?

Successful Farming - - FIRST CUT -

Most pro­duc­ers – 73% – ex­pect lower farm in­come this year be­cause of the trade war, ac­cord­ing to a Pur­due poll con­ducted be­fore Canada, Mex­ico, and the U.S. agreed on a re­place­ment for NAFTA. Econ­o­mists James Min­tert and Michael Lange­meier say trade con­flicts are “a source of angst among U.S. farm­ers.” Half of all farm­ers ex­pect in­come to fall by more than 10%.

The poll, con­ducted as part of Pur­due’s Ag Econ­omy Barom­e­ter, finds farm­ers in a dour mood. Some 54% say their oper­a­tions were worse off now than a year ago; 33% say they ex­pect to be in still worse shape a year from now. Some 69% of re­spon­dents say they see hard times for the U.S. ag econ­omy in the up­com­ing 12 months. The pes­simistic rat­ings are roughly dou­ble the sen­ti­ment ex­pressed dur­ing the sum­mer.

“Con­cerns about the im­pact of trade con­flicts with ma­jor agri­cul­tural trad­ing part­ners, es­pe­cially China, con­tinue to re­ver­ber­ate through­out the U.S. pro­duc­tion agri­cul­ture sec­tor,” say Min­tert and Lange­meier. “This year’s huge corn and soy­bean crops, low mar­ket prices, and prospects of bur­den­some stocks have com­pounded those con­cerns.”

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