Dr. Dave Kohl's 10-25-25 Rule

Dr. Kohl’s 10-25-25 Rule

I’m KayDee Gilkey with today’s Open Range.

We all want to know what to expect in 2013, with the many political and debt uncertainties hanging over our head, it is difficult to discern what will happen with the economy.

One of my favorite ag economists is Dr. Dave Kohl, Globetrotting Emeritus ag econ professor from Virginia Tech. He is easy to understand and with a heart of a teacher, Dr. Kohl can provide signs to watch for, to help know what we can expect.

Dr. Kohl explains one such rule that provides signs for fuel costs.

Kohl: “The 10-25-25 rule is very, very simple. If you see oil prices increase $10 by barrel. It represents a 25 cents increase at the pump and a quarter less or 25 percentage points less growth GDP in the U.S. economy. Conversely, if you see oil prices drop $10s you’ll see 25 cents less at the pump and increases our GDP by a quarter.”

If you want to learn more about what Dr. Kohl is predicting with economy, both domestically and globally -- he is in LaGrande tomorrow at the ninth annual Cattleman’s School as one of the speakers. It starts at nine a.m. on Saturday, the 19th and no registration is needed. It will be held at the Blue Mountain Conference Center.

I’d encourage you to go. It will be well worth your time.