How could agriculture be impacted by a U.S. recession?

Farm income has taken a hit over the past year, and ag bankers are noticing a weakening of overall farm finances. It has reignited fears of a recession, but there are several areas an economic downturn would target.

Right away, a recession is likely to hurt credit as well as farm lending. Analysts with dairyherd.com say that on the commodity side, cotton is the most vulnerable due to its status and discretionary item. The dairy industry also stands to lose during a recession, largely because it relies on stable markets.

Researchers note that while agriculture can act as a buffer, it is not immune to economic uncertainty.

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