Tariffs Bad News For Farm Economy, Especially Now

Having other nations slap tariffs on U.S. farm products is never a good thing, but right now, the timing is pretty bad for the farm economy.  USDA Chief Economist Rob Johannson said even without the negative effects on prices caused by the tariffs.

"And that farm income is down more than 50% since 2012 in real terms. And in real terms, our estimate for net farm income over the next ten years is expected to decline. We know that borrowing is up 21% since 2012, total farm debt is forecast up to levels not seen since the peak in the 1980s."

And, the USDA three months ago was forecasting this year's farm income to drop from 2017's.  That forecast, though, was made before most of the tariffs really kicked in.  However, the USDA is set to release a new farm income forecast, whether that will be any different from the previous one remains to be seen.

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