12/23

Agricultural Sector Woes Keep MOO Flat Amid Economic Challenges

The VanEck Agribusiness ETF (MOO) is experiencing downward pressure as the agricultural sector faces significant economic challenges. Farmers are grappling with a third consecutive year of losses due to declining crop prices and rising production costs. Corn and wheat prices have plummeted by 37%, soybeans by 28%, and cotton by 22% since their peak in 2022. Meanwhile, the cost of farming inputs like fuel and fertilizer has surged by nearly 30% compared to 2020, exacerbating financial strain on farmers. This economic environment has led to a 25% drop in net farm income over the past two years, with row crop sectors experiencing even steeper declines.

The traditional safety nets designed to support farmers during tough times have not kept pace with inflation, rendering them less effective. Programs such as Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) have not been updated since the 2014 farm bill, leaving farmers with minimal assistance. The lack of a new farm bill further complicates the situation, as farmers struggle to access credit and face the risk of losing their farms. The agricultural industry is in a recession, with thousands of layoffs across the agribusiness sector, highlighting the urgent need for economic aid and policy changes to support the farming community.

The VanEck Agribusiness ETF (MOO) is currently priced at $64.42, reflecting a 0.46% decrease from the previous close.