Despite the high rises of the DOW and the S&P 500, the economy for the average American is not in a good place. Political and economic pundits are arguing back and forth whether we are in a recession or not. If we are in one, it hasn’t been an epic recession, but it is weighing heavy on American pocketbooks. But what effect is the current situation having on the progress of the Farm Bill? A Farm Bill that is already late.
Steve Nicholson is a strategist at RaboBank, and he talks about one thing that can be argued about there not being a recession is the availability of jobs.
Nicholson says that the Fed is likely going to downplay any use of the “R-word” to keep the markets from overreacting. There is also political pressure on the Fed from both sides of the aisle. They will use the actions of the FED positively or negatively, depending on their political narrative.
Nicholson adds that economic issues with the Farm Bill are going to become exacerbated based on it being an election year. With both agricultural and nutrition titles in the farm bill, expect the bill to be used as ammunition in campaigns in both urban and rural areas.
Nicholson says that there are incentives on both sides of the aisle to get it done.
However, the clock is ticking. With an election year, we quite frankly have a July 31st deadline, no matter if the Farm Bill has been extended to September 30th. The August recess and campaigning are going to keep lawmakers away from D.C.
