Outlook On The Ag Economy Depends On What You Grow

2025 was a tale of two economies in the farm sector based on commodity category.  Former Agriculture Department Chief Economist Seth Meyer said for crop growers.

“As commodity prices have come down for their 22-23 peak, we haven't necessarily seen the same moderation in the input price side," he noted.  "And that tends to squeeze margins pretty significantly.”

Add trade disruptions, and Meyer said that adds to stress on the crop side of farm income.  Meanwhile, when it comes to the livestock sector.

“Things have been looking pretty good," Meyer said.  "We've seen record high feeder and fed cattle prices.”

Fueled, he said, by both a contracted cattle herd and strong consumer demand for beef specifically and proteins in general.  Meyer believes USDA's January cattle report will perhaps indicate if the current contraction phase is nearly over and perhaps the beginning of an upturn in inventory.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com