Policy and Trade Uncertainty Driving Agricultural Market Volatility

DENVER, CO – With policy and trade up in the air, a CoBank’s Knowledge Exchange 2020 outlook report suggests that these areas will be the key factors to shape agriculture and market sectors in the new year. Agricultural policy at the federal level has been wrought with uncertainty and volatility. The trade environment for 2020 remains hazy as well. Beyond a possible U.S.-China phase one deal, more progress with China will be a challenge. As a result, it is difficult to see trade as a bright spot in 2020. CoBank also says that the atmosphere in Washington today has given way to progress on agricultural labor legislation and the USMCA. But a protracted partisan fight over impeachment is on tap in the Senate. This rancor makes it difficult to advance legislation that helps agriculture, which would give either side a win for the hotly contested 2020 election. Market Facilitation Program payments to farmers helped make up for persistently low commodity prices in the last year.