Agriculture economists say farming recession, trade without China causing 'severe' financial squeeze

Ag Economists’ Monthly Monitor graph

Agriculture economists share a bleak outlook for American farmers."The financial squeeze gripping row crop agriculture is only growing more severe, according to the latest Ag Economists’ Monthly Monitor. As of September, 91% think the U.S. crops sector is in a recession, which is an all-time high for the anonymous survey," reports Tyne Morgan of Farm Journal.

Without orders from China, low soybean sales continue to be the "biggest drag on the farm economy," Morgan explains. "In fact, 77% of economists surveyed say current U.S.-China trade policies are hurting farmers." More than half of experts surveyed think China will eventually purchase U.S. soybeans.

Morgan writes, "Ag lenders in some regions, such as the mid-South, warn farmers are experiencing the most financial stress since the 1980s."

Graph by Lindsey Pound, Ag Economists’ Monthly Monitor

Looking ahead to next year, agricultural economists are divided. Morgan writes. "Fifty percent say it will be somewhat worse off or unchanged, while the other half expect the situation to slightly improve."

The Department of Agriculture plans to release its farm aid package sometime over the next two weeks. Morgan adds, "Sixty-two percent of surveyed economists said government direct payments benefit crop producers."