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Trade Deal Spurs Increase In Farmer Optimism, But Is It Warranted?

Future expectations increased significantly since the deals were signed and approved. (Credit: Purdue University, Center For Commercial Agriculture)

Following a pair of trade deals, many in agriculture are expressing increased confidence in the farm economy.

Data from Purdue University's Ag Economy Barometer shows more than two in three farmers believe it’s likely the soybean trade dispute with China will be resolved soon.

A growing number of farmers say they expect U.S. agriculture exports to rise as well.

Despite the increased optimism, economists say row crop farmers don’t have nearly as much to gain from the agreements as many expect.  

Andreas Hauskrecht is a Clinical Professor of Business Economics at Indiana University’s Kelley School of Business and researches trade policy.

“It’s basically a Band-Aid to cover the wounds that were caused by this trade conflict initiated by the United States,” he says.

Despite the less than enthusiastic response, President Donald Trump hailed the deal on Twitter, calling it “the greatest and biggest deal ever made.”

China recently announced it would be reducing tariffs on certain U.S. goods.

Want to contact your legislators about an issue that matters to you? Find out how to contact your senators and member of Congress here.

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