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Economist Sees Good Things Ahead for Farm Economy

Dan Economy

economist
By Andrii Yalanskyi/Shutterstock

A Wells Fargo economist predicted a rosy future ahead for American commodities during the next several years. Michael Swanson says the only thing that could seriously derail that prediction is the weather. The Hagstrom Report says Swanson spoke at the Crop Insurance and Reinsurance Bureau’s annual meeting.

He says, “Life is good now, and the prices should remain high up to 2025.” Swanson did say that fertilizer prices aren’t sustainable at their current highs. The economist also says that farmers have to be disciplined in what they’re paying to rent land and not agree to rents so high that they can’t make a profit. The value of U.S. farmland has risen from $1 trillion in 2020 to $2.7 trillion this year.

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As far as the overall economy, Swanson says it’s “very, very strong.” If interest rates rise to 3.5 percent and inflation drops, businesses should be able to make adjustments.

(From the National Association of Farm Broadcasters)