News
USDA Chief Economist: ag outlook is positive, but uncertainties remain
USDA Chief Economist Seth Meyer says the outlook for the U.S. ag economy is positive, but uncertainties remain.
“Supply chain disruptions have moderated but at some costs,” he says. “There are some costs embedded in the system between the animal producer and the meat wholesaler that remain, and they may remain for awhile as an offset to prevent further disruptions of the type we saw earlier in 2020.”
He says the prospects for crops and livestock are good…”based upon continued strong domestic demand and good exports,” he says. “We need both in order to achieve those prices that we’ve forecast, and we expect that they will be there.”
Meyer says trade and weather will also be critical.
“Trade, particularly trade to China, is going to be a key element for 2021 for the crop and livestock sectors,” he says. “…and as always, weather will have the last say on how much gets planted, how the crops in South America turn out, and how our own crops get planted here in the Northern hemisphere and eventually what those balance sheets look like.”
Meyer presented the outlook for the U.S. ag economy and trade during the USDA’s 97th Annual Agricultural Outlook Forum.
