Ag Economy for 2023 Part 1
From the Ag Information Network, I’m Bob Larson with today’s Fruit Grower Report. The agricultural economy is dependent on so many different factors, such as weather, government regulations and inflation, and recent years have presented challenges to agriculture on each of these fronts.
Rabobank Global Strategist Stephen Nicholson says the best advice he can give is patience…
NICHOLSON … “I mean, we’re in a high-inflation situation now. Yes, it’s run down, but that won’t go away tomorrow. So if you imagine the cost of fertilizers, seeds, equipment, parts, fuel and land costs going down tomorrow, that’s probably not going to happen any time soon.”
But is there a way to plan it? …
NICHOLSON … “You guys really must be better planners. Let’s use the same word. Because one of the things, even when we started talking to the producers last spring, we said, you need to start planning for ’23 now. And honestly, if you’re planning for season 23 now, chances are you’re behind the eighth ball.
And as we know, says Nicholson, there are no guarantees year after year…
NICHOLSON … “If you can take the risk off the table, why not? You know, farming is an inherently risky business from the start because of all the influences that are out there. Let’s do something to try and take that risk off the table. Because we can’t control governments, we can’t control NGOs (Non-Governmental Organizations), we can’t control the weather. But we can control our reaction to what the market is giving us and in a way plan according to what the market is giving us.”
Tune in tomorrow to find out more… about the outlook for agriculture.
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