Everett Griner talks about USDA forecast of better times ahead in today’s Agri View.
From: Farm Futures magazine
USDA sees slow growth over next decade
Brazilian farmers to continue expansion, government report says.
By Bryce Knorr, Farm Futures writer
After a steep plunge in farm income, USDA forecasts better times ahead – a least a little. While the agency’s latest 10-year projections show flat prices for corn and only modest gains in wheat and soybeans, overall net income should rebound about 4% annually through 2025.
Most of the gains would come on the crop side of the farm income statement, with livestock only recovering at the end of the 10-year period. Prices for pork, beef and poultry could continue to falter, with the milk turning higher first.
The report is prepared every year as part of the agency’s budgeting process. Supply and demand tables were released late last year, and estimates for 2016 will be updated next week at the agency’s annual outlook conference.
The report assumes steady world growth after the current slowdown ends, with demand for farm products rising at a slower pace than during the last decade. With production rising faster than world population, people will eat a little better, but not better enough to trigger another boom.
“Together, these trends result in continued declines in the projected prices of agricultural commodities over the short term and the persistence of low prices throughout the projection period,” the report states.
For the complete report from USDA, click here.