While the planters are beginning to roll in parts of Iowa, we are filled with optimism for the year ahead. Farming requires you to be one of those eternal optimists. You need to be prepared to fight any challenge that comes along while hoping that you never face one.
Even if we were to have the perfect growing season with proper rains, low disease, weed, and pest pressure, there is still something looming that is well beyond the control of farmers to do anything about. The economy is taking a downward trajectory, and it means that even if the U.S. were to produce a bumper crop, and the prices somehow stayed high, we may not have enough demand to drive sales of our products.
Mike Zuzolo is the Founder and President of Global Commodity Analytics. He talks about his concerns surrounding the demand we are seeing for our products due to the economic downturn, and he believes we may not see a recovery anytime soon.
Demand has already fallen in a few popular marketplaces; wheat and hogs.
This has investors and speculators paying very close attention to the precarious position these commodities are in.
While it is a touchy situation, Zuzolo says that it isn?t all negative either.
