Midwest caught in the middle again

Down on the Farm

For the farmers of the Midwest the last few years have been a perverse cocktail of bad weather mixed with equally adverse economic conditions. Despite the hostile environment the agricultural sector has shown itself to be remarkably resilient – the region’s GDP growth in the last few quarters kept pace with the U.S. growth after years of lagging behind. But how long the region is able to keep its head above the rising flood of red ink is anyone’s guess.

Certainly, the weather has contributed mightily to the plight of the Midwest farmers. The severe flooding has not only impacted this year but will have economic repercussions moving forward.

In Wells Fargo’s August release of the “Midwestern States: 2019 Midyear Outlook” they outlined the predicament, “The National Oceanic and Atmospheric Administration (NOAA) reported that the 12 months ending in April were the wettest since records for the United States began in 1895. With fields inundated, the spring planting season was significantly upended – farmers were forced to shift to less profitable crop mixes, or leave millions of acres entirely bare. High water levels on key waterways (see Matt Miller article on barge business page 12) throughout the Midwest also disrupted the transport of fertilizer and harvested product.”