Financial experts say we’re going through another great economic reset.
Economist Dan Basse, president of AgResource Company, says between inflation, severe weather, war AND limited farmland– economic competitiveness is going from global to regional.
Basse says this shift in competitiveness and mistrust is adding volatility to the marketplace, making information about agriculture markets more important than ever.
Price inflation is expected to continue into 2023 for everything on the expense sheet, so Basse recommends farmers have a partner help them digest what’s happening in today’s marketplace.
The weather in other areas of the globe also plays a role in what we see price-wise in the USA. Extreme weather events such as heat waves are limiting crop production, which Basse says is creating the need for more acres when farmland availability is limited.
Transportation logistics still pose an issue, as exemplified by the low level of the Mississippi River this year. Basse says when barges can’t move agriculture products to major shipping ports, it adds volatility to the grain market.
Basse says there are things to be bullish about, such as farmers using volatility to their advantage by incorporating soybean meal into livestock feed.
Basse says he’s bullish about the cattle market and thinks dairy has an opportunity to add value with cross-bred cattle.
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