A new check on the rural economy says while the U.S. economy is doing well, however, the ag economy shows few signs of an imminent comeback.
This is according to the 2019 outlook report from CoBank's Knowledge Exchange division. It says trade uncertainty, rising debt levels and market volatility are threatening to derail the global economy with the trade policy between the U.S. and China remaining the leading risk.
The report says continuing rising costs in agriculture are expected to squeeze producers and that will cause further margin erosion and financial stress. The researchers say farmers should not bank on a fourth consecutive year of above-trend crop yields to make up for low commodity prices and rising costs.
It does find a silver lining saying there's a 50% probability of a trade deal being struck with China.