Ag Economy for 2023 Pt 2
From the Ag Information Network, I’m Bob Larson with today’s Fruit Grower Report. Challenges keep coming for all of agriculture, from weather to regulations to inflation, but when will it all end?
Stephen Nicholson, Global Strategist at Rabobank, says don’t look for any quick fixes to the agricultural economy, but it won’t be all bad …
NICHOLSON … “When we look at both prices from a sell-side and also a buy-side from an inputs perspective, and also for livestock farmers, you know, we’d expect ’23 to be fairly, a fairly good year from a price perspective, from a farmer’s perspective. We think ’24 has that potential as well.”
Some of our problems, Nicholson says, we created …
NICHOLSON … “The fed is holding on to a huge balance sheet balance. You know, we still have a huge money supply. You know, that’s going to fuel inflation and we need to take liquidity out of the system to get the system back to the normal areas. And the only way you do that is you like are going to cause some sort of recession that will sort of take some of that, if you have that capacity out, so we can get back to a more normalized situation.”
Fortunately, Nicholson says, we usually bounce back …
NICHOLSON … “Yeah, we do. And I’m going to quote one of my, one the Macro-Economists here in the states, he says “the U.S economy is the cleanest shirt in a dirty laundry.”
And I think it’s a great quote because it does say, in not sort of a Chamber of Commerce sort of speech, but the U.S. economy is the most resilient in the world.”
The optimistic Nicholson says he expects an uptick in ag exports later this year.
