Farm Credit Services of America’s Post

Our economist Matt Erickson discusses the key indicators shaping the Federal Reserve's view on interest rates, inflation, growth and the labor market, including possible impacts to agriculture.

In this piece co-authored with Uchechukwu Eze, we drew a number of inferences from the recently released July inflation figures, including the impact of base effect and agricultural seasonality on the observed decline in inflation. Read here: https://lnkd.in/dgecsTQC

Have you read the latest insights from the Ag Economists' Monthly Monitor survey series? Economists from across the nation with expertise in crops, livestock and ag policy share their sentiments on the agricultural economy as well as timely topics. Click the link below to learn more!

📈 Struggling with market volatility in agriculture? 📉 Agricultural businesses often face market volatility due to: 💰 Price Fluctuations: Variations in commodity prices due to supply-demand imbalances. 🌎 Market Access: Challenges in accessing new markets and dealing with trade restrictions. 📉 Financial Risks: Uncertainty in income due to unpredictable market conditions. How CMCS Can Help: 📊 Market Analysis: Providing detailed market insights and trend analysis to make informed decisions. 🌱 Diversification Strategies: Advising on diversifying efforts and exploring alternative markets to mitigate risks. 💵 Financial Planning: Offering financial management solutions to stabilize income and manage risks effectively. Navigate market volatility with confidence using our expert guidance and strategic solutions. 👉 Reach out to us for tailored market solutions! 📩 info@connectconsultancy.in . . . #connectmanagementconsultingservices #cmcs #Agribusiness #MarketVolatility #PriceFluctuations #MarketAccess #FinancialRisks #MarketAnalysis #Diversification #FinancialPlanning #AgricultureTrends #RiskManagement #CommodityPrices #AgricultureSolutions #BusinessStability

Is American Agriculture in a Recession? 🌾 As the economy tightens, questions loom about whether the American agricultural sector is sliding into recession. With farmers feeling economic pressures from rising costs to unpredictable market returns - unlike previous downturns, today's ag challenges are magnified by global events, inflation, and ongoing labor shortages. For agriculturalists, these issues are more than numbers—they're immediate realities impacting day-to-day operations and long-term sustainability. At Root Ag Advisory, we believe that understanding these economic currents is critical for decision-making and resilience. Learn more at https://lnkd.in/ggxbR8f2 #AgEconomy #RootAgAdvisory #EconomicInsight #FarmBusiness #AgChallenges

Jeff Schmid, our President and CEO, spoke today at the 2024 Agricultural Commodity Futures Conference hosted by the U.S. Commodity Futures Trading Commission and the Center for Risk Management Education and Research, Kansas State University. He spoke on "The Importance of Prices and Price Stability." Read his remarks here: https://bit.ly/49yiq1B #FederalReserve #Economy #Economics #Agriculture #Commodities

After several years of record profits for farmers and agribusinesses, the ag industry is in a down cycle that usually lasts four to five years, says Nelson Neale, president CHS Hedging. He joins the "It Takes a Co-op" podcast sharing insights on the U.S. and ag economies and global trends affecting agriculture. High interest rates and inflation has hurt the U.S. and ag economies. However, Neale says there are signs of improvement. He believes the ag economy is “fairly resilient” regardless of what happens with the U.S. economy. “At the end of the day, the agricultural components that make up products are ultimately still there.” Listen to the full conversation here: https://bit.ly/3YPqN5G.

The eighth annual Feeding the Economy report reveals that the economic impact of the food and agriculture-related industries grew by 11.8% in the past year, reaching $9.63 trillion – a fifth of total U.S. output. The report notes that America’s food and agriculture sectors are thriving, supporting 48,665,870 U.S. jobs. Learn more about the report by the numbers here: https://bit.ly/3WSgpdu

A thought-provoking read that sheds light on the economic numbers we’ve observed over the last decade, offering a fresh perspective on the challenges ahead. Key takeaways highlighting the magnitude of the challenge: • GDP growth of +5.9% CAGR from 2014 to 2024, but a -0.3% contraction in real GDP in USD terms. • The rupee has depreciated by over 30% against the USD since 2014. • The Bank of Mauritius’ net reserves have declined by USD 1.7 billion. • The tourism sector remains below pre-COVID levels in real USD terms. • Despite an over-reliance on the real estate sector, its GVA has dropped by -3.2% from 2014-2023. • An ageing population, with 1/3 of government expenditure allocated to social protection. What can we do to address these challenges? • Boost productivity and efficiency through technology, upskilling, and innovation. • Diversify the economy by shifting from consumption and imports, to domestic production (e.g., agriculture, blue food, renewable energy) and exports (e.g., investing in our port). • Stabilize the rupee via monetary and fiscal policies, export growth, increased FDI, and enhanced tourism revenue. • Revitalize the tourism sector by diversifying beyond the traditional hotel model. • Reform the pension system for long-term sustainability, looking beyond political gains. • Mitigate brain drain through meritocracy and creating more opportunities for talent retention. The road ahead requires bold decisions, innovative thinking, and collective effort to unlock our country’s full potential.

Our team has conducted an in-depth analysis and have outlined the potential challenges faced by the New Government, which covers our economic model, currency depreciation and inflationary pressures, agriculture & food security, and public finances & demographic pressures amongst others. Click here to read more! https://lnkd.in/diAun79h #AXYS #EconomicOutlook #MarketAnalysis #GovernmentChallenges #AXYSInsights