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Over the weekend, Farm Aid turned 40! The event took place in Minneapolis and was headlined by founding musicians Willie Nelson, John Mellencamp, and Neil Young. The mission behind Farm Aid is "to build and strengthen a family farm-centered agricultural system in America that values family farmers, good food, soil, water, climate, and strong communities. Farm Aid was meant to be a stand-alone event, however, the founders quickly realized there was a significant and ongoing need to support farmers, so the concerts have continued since 1985. After two decades, farmers still face a wide range of complex challenges. These struggles have been exacerbated by the Trump administration's trade and immigration policies. While the future of farming remains uncertain, there's no doubt that we must continue to support the agriculture community that remains the heart of our country.
Here are a few important updates...
NO CROP, NO CASH
A recent survey conducted by the National Corn Growers Association (NCGA) reveals that 97% of farmers are concerned about the state of the farm economy, and nearly half believe that a farm crisis is currently happening.
The past year has been challenging for agriculture due to a combination of natural disasters and complex political issues in Washington, D.C. Significant factors include:
- Flooding in April
- Extreme heat in the summer
- Trade war with China, leaving zero soybeans sold, due to high tariffs
- Labor shortage due to the anti-immigrant movement
Farmers are facing a significant financial burden, with this year's net cash receipts marking the most substantial decline in three years – a $71 billion loss in cash inflow. Despite these challenges, the federal government has not renewed the Farm Bill, which has supported the agriculture industry since 2018.
There is some hope on the horizon, as the Fed announced the first interest rate cut in 2025. This initiative could alleviate some financial stress for farmers. With lower interest rates, farmers will be able to take out cheaper loans to help navigate the uncertainties of the current crisis.
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Each week, this newsletter highlights what's going on in rural states, counties, and communities, and what One Country Project is up to around the country. If you value this content, please consider donating to One Country Project. Your contribution supports our efforts to connect with rural voters and to promote greater opportunities for rural communities.
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YOU CAN'T ERASE FOOD INSECURITY
We have a personal message for the Trump administration: You can't erase food insecurity! On Saturday, the United States Department of Agriculture (USDA) announced that it will end a well-established annual food insecurity survey. The administration was quoted calling it "redundant, costly, politicized, and extraneous." You know what's "redundant, costly, politicized, and extraneous"? Americans not having access to nutritious, affordable, and reliable food sources. Food insecurity is a very real issue in our country and revoking resources and attention to the issue will not make it magically disappear.
Rural areas in the United States have consistently greater food insecurity rates than the overall population at 12.1% in rural communities compared to 10.5% of all households. These regions experience economic instability as a result of job loss, declining populations, and growing elderly populations, therefore leading to low food access and other socio-economic barriers. The Trump administration's move to cancel an informative resource that helps experts, policymakers, and leaders in our country make important decisions to address food insecurity is heinous. And Americans in Trump's base and beyond will pay the price. It's time for those in power to eat their words and stop pulling those struggling down with them.
NUMBER OF THE WEEK
0.25%: Fed cuts interest rates by a quarter point for the first time this year.
The Federal Reserve's primary responsibility is to adjust interest rates to maintain a 2% inflation target and keep the unemployment rate low. Last week, we discussed the record-low hiring rate of 3.3%, which reflects the increasing unemployment rate. As their dual mandate started to diverge from the goal, the Fed cut interest rates by a quarter point to a range of 4 - 4.25% to stimulate the economy. As a result, farmers can anticipate easier access to farm loans to finance through the stagnant market.
WHAT WE'RE READING
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