The economy in general has been a challenge around the globe. Of course, that spreads down into many facets of the economy and agriculture is no different. As we head into this harvest season, we have a lot of question marks that will drive our markets and economic outlook. Trade hasn’t been the greatest, the rivers have been low because of drought, which has affected our crop conditions as well.
As we approach the end of the growing season, we take stock of where things are as the year comes closer to a close, and we plan for 2024. Brent Gloy is a co-founder of Agricultural Economic Insights. He starts his outlook with a recap of the above-average years we have enjoyed.
A lot of people have gotten hung up on the USDA’s forecast of lower farm incomes in 2023. However, Gloy counters by saying that this isn’t something to get panicked about. We are talking lower levels compared to the past few years which were abnormally high.
David Widmar of AEI also added that while we are going to see a large drop this year, we have to keep things in that perspective that this is just the numbers making their way back to average.
Widmar also discussed what has been behind this pullback in profits, from a 30,000-foot viewpoint.
