WASHINGTON D.C. - Most, if not all in the Ag industry, would agree that 2019 was a rough year.
In fact, for many, 2018 and 2017 weren’t much better. However, according to a variety of surveys and polls, many in farm country are feeling more positive about the road the Ag industry is on in 2020.
But one economist says he’s not looking at 2020, but well beyond.
Nathan Kauffman economist for the Federal Reserve says it’s not the next 12 months that have the lion share of his focus.
“Keep in mind, we’ve been in broadly speaking a downturn in the Ag economy for the past five years, and if you add another five years to that, that’s ten years’ time and a decade is a long time to be in an environment where it’s difficult to make investments for long term planning if you are a producer. So, I think what I would worry about is not necessarily what these pressures look like for the next year, through there are certainly places where you could see them building, I think it would be more if this continues to last.”
Kauffman says if the farm economy as a whole does not see some changes for the positive between now and 2025, stress and pressures will continue to build, requiring a much larger correction.
And Kauffman anticipates if the farm economy doesn’t turn around in the coming years, it will continue be the mid-sized farm that feels the greatest pressure.