E Suicide Watch: Farmers Are Hurting, Mr. Trump

Farmers are losing ground under Donald Trump. Farm gross receipts grew from the end of the Great Recession peaking in Q2 of 2014. Under Barack Obama, receipts looked good until a steady decline caused a likely defeat for Hillary Clinton in rural states.

The only problem is that Donald Trump is putting farmers on the front line with trade. There is a mental health danger discussed below as well as farmers being subject to demand shocks that come with trade uncertainty.

So the following chart is one to watch, though Trump was failing them miserably before the tariff applications, although NAFTA was in discussion. There will be financial and real bloodshed from suicide out in the field unless farmers can convince POTUS to stop sacrificing a group that is very important to the well being of all Americans.

 

Receipts Includes Wholesale and Retail Sales US Bureau of Economic Analysis

 

The decline was precipitious toward the end of 2014, and into 2015, which could have led to the success Trump had with farmers in the election. He campaigned on tax cuts and tariffs, but surely the latter was drowned out by dollar signs registering in the eyes of unwitting tillers of the soil.

Milk prices have joined soy and corn in dropping. Prices were weak before the tariffs were applied. But with China importing milk products the tariffs are already hurting. However, whey dropped to 39 cents before experiencing a dead cat bounce Thursday and it did not participate in the drop for other milk products on Friday.

The story was running that Trump is just a negotiator, that the stock market has nothing to worry about, and that negotiations were back on. Cramer was his usual self, no doubt pumping and dumping. But then Steve Mnuchin reported negotiations were back off. There is still time for this all to play out, but as Chuck Grassley has said, it is already catastrophic what is happening to soy and corn.

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Disclaimer: I have no financial interest in any companies or industries mentioned. I am not an investment counselor nor am I an attorney so my views are not to be considered investment advice. The ...

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Gary Anderson 1 year ago Author's comment

Update1: Farmers are beginning to break ranks with Trump. What they need to realize is they voted for their doom when they first put him in office. He was tariff man years before being elected to office. Now China's people's war, initiated today, will be effective as it has in the past. The Chinese citizens will vote on the trade war by boycotting America, even though they had started buying more product from the USA. That growth will be gone. Chin's citizen boycotts of other nations have been amazingly effective. America is losing 1.4 Billion customers because we have a novice in the White House who has surrounded himself with radical thinkers.