Ag economist highlights favorable outlook for grain farmers despite macroeconomic challenges
An ag economist says the financial outlook for grain farmers is favorable despite challenges in the broader economy.
David Widmar with Ag Economic Insights tells Brownfield inflation and supply chain concerns are top of mind right now, but grain farmers are still seeing a positive budget outlook and commodity price environment.
“The outlook is pretty favorable. In fact, it’s probably one of the more favorable outlooks we have seen in the last ten years or so.”
He says producers need to focus on known variables when making decisions on the farm.
“Let’s not get too bogged down by the uncertainties, especially around global supply chains, global conflict, and macroeconomic uncertainties. Keep mindful of those and watch them, but don’t lose site of the day-to-day decisions that need to be made on the farm.”
Widmar says the top five macroeconomic factors for the ag sector to watch in 2022 are inflation, energy, interest rates, the deficit and global supply chains.