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Farms Remain A Question Mark Under A Trump Administration

Farms Remain A Question Mark Under A Trump Administration

Investors are still scrambling to best position themselves in 2017 under a new presidential administration. Meanwhile, one of the sectors that have perhaps fallen under the radar is the farming sector.

Agriculture And Trump

CNBC's Jane Wells took a look at what can be in store for farmers and farm investors when President-elect Donald Trump officially takes office early next year.

Wells noted that agriculture is one of the few industries where the United States has a trade surplus, so farmers are hoping that Trump won't interfere with their industry. Nevertheless, 2016 was a difficult year for farmers, as there has been a global glut in the agriculture market.

Cattle futures have started to rebound from their October lows but still remain at low levels, which could pose problems for farmers if the commodity does not improve.

Brett Crosby, a Wyoming-based rancher, told CNBC there are some concerns among farmers that Trump could make changes to trade agreements that will impact their business. For example, a renegotiation of the NAFTA trade deal could impact exports out of the United States and into Canada and Mexico.

Meanwhile, Trump has yet to appoint an agriculture secretary nominee. It has yet to be seen if his appointee will want to crack down on tax-payer subsidized crop insurance.

Does Trump 'Owe' Farmers?

Wells further noted that she talked with a grain farmer in Chicago and the CEO of an ethanol company who believe farmers "put Trump over the top and [he] owes us."

Crosby doesn't feel the same and believes that many American voters chose Trump because of his pitch to the public that he doesn't owe any special interest or lobby groups any favors for helping him reach the White House.

"My hope is that [Trump] continues to follow the path of deregulating operations and businesses to make them more competitive in global markets, rather than going down the path of protectionism," the rancher told Wells earlier this month. "It's more important to see what he does than what he says."


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