Farmers + Trump

Soybean prices (2014-2020). Monthly soybean prices in US$ per bushel. DATASOURCE: Macrotrends. WIDGET:


The problem wasn’t that the Fed ended quantitative easing [in 2014], it was that the Fed began quantitative easing in the first place. During QE, not only were commodity prices pushed up, but borrowing costs were dirt cheap. It made sense during the time for farmers to borrow heavily to binge on land and equipment, in order to meet the “demand” for soybeans or other goods that was being signaled to them by higher prices.