Will farmers get a better deal?

Yesterday I had occasion to take a back roads drive, mostly through Benton and Morrison Counties. Plenty of country folks are still displaying their Trump signs and flags. None of my business, what they put in their yards.

A farm economy awash in an unprecedented infusion of public dollars directed by the Trump administration could face a reckoning soon. Close to $40 billion in agriculture-related payments this year mask structural problems in a badly broken market that doesn’t pay most farmers enough to continue farming. New leadership in the White House and congressional agriculture committees should act to fix a policy framework that has greatly benefited global grain and meat companies at the expense of farmers before these ad hoc Trump payments disappear.

The massive public payments over the last three years help conceal how little farmers have made from the market. The USDA projects median farm income in 2020 will be $934, up from $296 in 2019. Median farm income has been negative from 1996 through 2018. Farm debt is forecast to rise to a record $433 billion in 2020, according to the Congressional Research Service. The farm asset to debt ratio is up 14%, the highest since 2003 after rising steadily over the last eight years. Approximately 8% of loans are in poor condition, double the rate in 2014, according to the Farm Credit Council.

It is off-farm jobs, often coming with a health care plan, that keep most farm families going. - IATP