06/02/26 Afternoon CommStock Report- No Where Near a 1980’s-like Farm Crisis

Part 2 of 2 One of the most notable differences between this Ag recession and the 1980s farm depression is that this time politicians do appear to be more open to farm aid than before. Back then, we had to have tractor-cade protests and farm-aid concerts to draw attention to the disaster. Back then, farm banks failed in large enough numbers to worry the Fed. There is no issue this time with farm bank solvency. This time Trump exchanges political support from farmers for ACHs, above and beyond farm bill safety net provisions, on a regular basis. It is entirely political, but the ACH deposits spend the same. These payments do not make farm finances whole but they reduce the sting of his trade war policy.  The farm bill safety net is being improved and hopefully will not be deeply drawn upon. It is likely they will pass a new farm bill before the mid-term election. Farmers never got this much attention in the 1980s until the farm banking sector was overwhelmed. The Farm Credit System went belly up but this time they are solvent enough to continue paying dividends to their borrower/customers. They used the farm aid back then…