Nicholson Farm Economy Has Weathered The Pandemic Fairly Well

Despite all of the hopes and prayers, the challenging economy farm country has experienced over the past couple of years continues into 2022. But Steve Nicholson with Rabobank said agriculture has weathered the storm without the damage once feared when the pandemic started, and many restaurants shut down for a time.

“For agriculture, the good news is the economy’s growing and consumers have money. And, you know, there’s not as many restaurants so people are eating at home," Nicholson said. "And so, they’re going to the grocery store and buying it and bringing it home and eating it. So, that’s been good for a lot of parts of the ag economy.”

Some categories, Nicholson said enjoyed great gains, and many of those that struggled are coming back.
But he said it’s all a balancing act.

“I think when you look at the overall economy, think about inflation that could raise some challenges, you know, ever-increasing costs. As we know, commodity markets don’t really care. I mean, inflation will help keep commodity prices higher, but if the supply and demand overwhelm them, they don’t really care if it’s inflation or not, I mean prices will do what they need to do” Nicholson continued.

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