Net farm income, a broad measure ofprofits, is forecast to increase $4.0 billion(4.8%) to $88.0 billion in 2019, afterincreasing in both 2017 and 2018 allbeit to alessor degree. Net cash farm income isforecast to increase $7.6 billion (7.3%) to$112.6 billion. These estimates are based onfarm reports as of the end of August 2019.This segment of the consuming market ofstructural products relies heavily on cash tofund equipment replacement. There are otherpositive notes in the ag sector as farm assetvalues are up about 2% mainly due to realestate increases and farm equity is also onthe rise. This provides for a more comfortableoutlook for the farm community increasingtheir willingness to spend. Some degree oftrade news on a positive note could very welltrigger an ag sector recovery of sorts. On theflip side, trade issues are complicating thepurchase decision. We expect some newson the trade front as the election nears and itshould present itself just enough ahead of theelection activity to garner some results. In ourmind that could be still late this year.
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