Can positive trade news turn it around?
It appears that there was finally some good news in the U.S.-China trade dispute. Any positive news is certainly good news for those involved in agriculture. To underscore how important it is, one just needs to look at the USDA’s most recent estimates of farm income and farm financial conditions.
In many respects, the Economic Research Service’s latest net farm income update didn’t provide much new information. Rather, it only provided further confirmation of what almost everyone in agriculture already knows. The farm economy is not good. Despite ERS’s estimate that the U.S. will make $4.6 billion in market facilitation program (MFP) payments, net farm income is forecast to fall 12% from 2017 to 2018.