According to J.P. Morgan, the state of US agriculture is rapidly deteriorating. Moreover, it is on the verge of crisis, experts say. They name three reasons: declining exports, an extremely poor crop of corn and soybeans as well as ongoing trade conflict with China.
J.P. Morgan analyst Ann Duignan believes that the main problem the American farmers have faced is a critical oversupply of global agricultural markets. This oversupply puts US exports of agricultural products under pressure. US farmers are entering not the best times, the data from the US Department of Agriculture showed.
The estimates of J.P. Morgan specialists reflected the recent decrease in exports of soybeans by 27% due to tariffs and excess global supply.
In 2019, the planting season started very slowly, Ann Duignan noted. She is sure that this tendency will continue the next year, while crisis factors in the US agricultural industry will rise in the near future.
