US Farm Income Recovery Forecast To Begin In 2026
‘Bidenomics’ hasn’t just been a blow to mid- and low-tier consumers—many of whom have spent the last few years draining savings and maxing out credit cards to weather the inflation storm—but also to American farmers. High operating costs and sliding crop prices have squeezed farm incomes and crushed sentiment across the agricultural sector.
A new report from farm lender AgAmerica warns that the US net farm income slide, which first emerged in 2022, is expected to persist until early 2026 when a recovery is forecasted to materialize. Bloomberg first mentioned the report earlier.
“Commodity prices are coming off record highs, government support is dwindling and indicators across the board suggest the cyclical nature of agriculture may be steering us toward an economic slowdown,” AgAmerica wrote in the report.
AgAmerica said, “Economists anticipate a modest recovery starting in 2026.”
Ahead of the US presidential election in November…
Sentiment Of American Farmers Implode https://t.co/zOTo4rC8gu
— zerohedge (@zerohedge) October 2, 2024
And after.
US Farm Sentiment Set For Largest Quarterly Rise On Record https://t.co/jp47iGKkRg
— zerohedge (@zerohedge) December 5, 2024
In a note after the election, Bloomberg Intelligence’s Jason Miner said, ”Producers were optimistic about lower tax and environmental regulatory burdens on the agriculture economy in the year ahead. Sentiment around future conditions rose more than for current ones. Appetite for capital investment significantly improved alongside a rise in expectations for farm financial performance in 2025.”
Here’s a look at how much optimism Trump brought to farmers…
It remains to be seen how the incoming Trump administration will protect farmers in the event of a broadening trade war with China.
Tyler Durden Tue, 01/14/2025 – 06:55
Source: https://freedombunker.com/2025/01/14/us-farm-income-recovery-forecast-to-begin-in-2026/
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