Trump’s War on US Farmers Pt. 1 | The Economics of Farming

The loss of income and customers facing U.S. farmers due to crop sale losses makes headlines routinely, but the increase in farm lending and sales of farms has not. Read on to understand this underreported part of farm economics.

Image for post
Image for post
The Farm Crisis in India can help illuminate the problems that all farmers face when trying to earn a living
  1. These losses need to be offset by loans from the U.S. government
  2. Futures pricing indicates this is bad for the U.S. economy and the U.S. agriculture sector
  1. You take out a loan based on your available credit. If you don’t have money saved to finance changes, or don’t want to risk any capital you have accumulated, you can take out a loan. The loan could be at low to zero interest from friends, or organizations like Kiva. Or it could be at a high-interest rate, depending on how it’s financed. Like, if a person uses a high-interest credit card to pay for improvements, that essentially becomes a high-interest loan betting that the value of the improvements will, over time, outweigh the cost of the loans.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store