Meyer: Farm Economy Didn’t Suffer During COVID As Feared
When the coronavirus pandemic started to pick up in intensity last year, many experts predicted a disastrous cut in trade in U.S. Ag products. However, according to USDA Chief Economist Seth Meyer, that didn't happen.
"Hasn't been that way. As a matter of fact demand, again trade demand, has been incredibly robust."
Meyer said instead of the expected recession in demand for Ag products became record large.
"So our anticipated value of US agricultural trade record large in 2021 and expected to grow a little bit from there setting a new record"
He noted there are a few reasons for that, one is that for many high demand Ag products.
"both in the US and abroad carryout stocks are tightening."
Helping bring commodity prices up and of course farm income. But Meyer said looking ahead.
"I think the challenge will be moderating commodity prices and rising input prices. I really do think that as we look forward that is somewhat of a natural direction that I worry about."
And Meyer noted commodity prices have settled down prices for things like fuels and fertilizers are still climbing.
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