The U.S stock market is setting new records but farmers are facing issues in the main agricultural sector of the U.S. The government announced several commodities to the farmers but the income from the farms is still declining. Farmers are expecting additional aid from the government so that they can happily continue the circle.
It is not something new to hear, farmers in the U.S have been suffering since 2011. They are looking forward to the government to introduce new agricultural policies. Recently, farm incomes fell in the states of Colorado, Nebraska, Wyoming and some areas of New Mexico. Experts say that the conditions will remain the same for farmers for some time.
Since 2013, Trump’s policies regarding trading haven’t helped the farmers in the U.S. There is a decline in trade with China, Mexico, and Canada. This decline in exports caused damage to the agricultural sector. The agricultural sector is still struggling because of those policies. Change in policies is required to better the condition of farmers. Recently, Trump announced tariffs on China’s imports. China responded to the situation and announced that he is cutting off with the U.S. in terms of trade.
China was the fourth largest consumer of U.S products but it has officially stopped buying the U.S agricultural products. It is producing a bad impact on the economy of U.S. In 2018, the U.S made $5.9 billion through export to China. China is the world’s largest buyer of soybeans. The price of soybeans has declined due to the recent policies of China. Officials in the U.S. consider the trade war as the major reason of the bad condition for farmers in the U.S. Statistical data shows that prices dropped to almost 9% since the start of the trade war. An analysis done by the University of Missouri has proved that the exports of soybeans dropped more than 70% from 2018 to 2019.
Since the demand for soybeans is declining, farmers are trying to cultivate corn. The price of corn is low in the market due to its abundance. So, farmers don’t get back enough from the crops. This problem is leading to financial instability in the agricultural sector.
The problem is hurting the farm companies also. Although farming has a little contribution towards the economy of the U.S. but it is badly affecting the locals. Trump said that he is going to announce new policies and his farmers will become stable in no time.
The bad weather conditions have also participated in the bad condition of the farmers. The U.S. corn production capability and its quality are declining because of bad weather. Farmers are finding it hard to make both ends meet. Many farmers are taking huge debts to recover the loss but the condition is capturing them more and more.
The stock market is producing positive results on the economy of the country. But farmers are being neglected in terms of continuous support. Changes in the agricultural policies are needed to better the conditions of farmers.