The volatile economic climate of 2020 has many farmers, ranchers, and landowners looking to secure their financial portfolio with low-risk investments rather than gambling collateral on high-risk stakes. Through COVID-19, rural real estate has consistently stood out as an outlier compared to the ups and downs of commercial, residential, and stock market investments.
Farm labor shortage was a prevalent topic for U.S. agriculture in a pre-pandemic world as securing adequate labor is an essential part of the industry. COVID-19 exacerbated farm labor shortages that already existed within U.S. agriculture and highlighted which sectors are most vulnerable within the U.S. domestic food supply system.
Since Phase One of the U.S.-China trade agreement was passed at the start of 2020, quite a bit has happened in the world. The accelerated progression of current events this year makes it challenging to stay on top of the latest news for U.S. agriculture—but particularly challenging to stay informed on the varying agricultural trade agreements and the progress that has been made for U.S. ag exports.
In uncertain times, farmers and ranchers who are proactive about their financial situation are more apt to be able to play offense when the tides shift and new opportunities emerge. Liquidity is essential in maintaining the success of an agricultural operation but can prove difficult to obtain when you find yourself overleveraged and unable to stay ahead of a heavy debt load.
Almond farming originally began in Western Asia, but it wasn’t until the 1700s that it was officially introduced to American soil by Spanish explorers. By the 1900s, commercial almond production in the U.S. had been established in the heart of California’s Central Valley as almond trees flourished in the Mediterranean climate.
While Fourth of July plans may look differently for many this year—a shift from large social gatherings to more intimate quality time with friends and family—American farmers and ranchers will be hard at work before the sun comes up to ensure the rest of the nation is fed.
At the start of 2020, sentiment among American farmers was generally optimistic. The first phase of the U.S.-China trade agreement was underway with the U.S.-Mexico-Canada agreement right behind it. Farmer sentiment reached a record high in February and Secretary Perdue stated that Market Facilitation Program (MFP) payments would likely not be needed this year.
In 2018, AgAmerica conducted an in-depth consumer insights study with the help of an experience design firm. We performed this analysis in order to better understand the financial needs of the farmers and ranchers we proudly serve. Through this study, AgAmerica found that the most used words by farmers to describe the lending process indicated a general unease when it came to obtaining financing for their operation.
