Ag Upturn

Producers…dyin’ for good news? …Think I’ve got some. A majority of agribusiness leaders recently polled reported they are optimistic about their own agribusiness in 2010 compared to 2009, with some asserting that they were “very optimistic” about the near future.

 The poll was conducted by Agri Marketing magazine and AdFarm, a full-service communications firm exclusively serving agribusinesses. Then who better? They surveyed leading executives from a wide range of agricultural companies operating in U.S. markets. AdFarm spokesman Dan Danford: “It goes in line with industry economists who have also predicted that right now we’re at the low end as far as the economy in general and the ag economy downturn and we’re about to see an upward V trend.”

 Here’s a part that I got excited about. More than 53% of respondents predicted the average price for milk would escalate to $15/lb or higher from the low average of $12.40/lb in 2009.

The agricultural analysts also said 60% of executives from companies serving livestock predicted an increase in their company’s revenues, while 70% of crops-focused companies expected higher earnings.

 “My reaction is the experts’ lips to God’s ear. That’s right. The fact that they’re not just thinking off the top of their head…this is all based on research. In other words their astute economic knowledge as opposed to using a ouija board. Absolutely!