Root Agricultural Advisory’s Post

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

Accelerating farmer financial woes reflect in the record low Rural Mainstreet Economy Index in 2024. A re-evaluation of strategies in agri-focused rural economies seems inevitable.

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.

The Sectors of Economies. The Services sector dominates the economies across the world! #Manufacturing #Services #Agriculture #WorldEconomy #economy #globaleconomy

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. 

After a shock contraction in the agricultural sector in the third quarter, new research found "various areas of concern" in the calculation of the data. While the official data shows that the sector shrank by almost 16% in the third quarter, the report says the decline was only between 5% to 6%. This means that the SA GDP grew by 0.7% - not 0.4%. https://lnkd.in/dxaHJZRm

How do sectoral components of economic output ( the Manufacturing, Agriculture, & Services sectors) respond to systemic shocks from banking crises? Observing impulse responses for 10Y forecast Horizon using Europe and central Asia data. The manufacturing sector is the worst hit by banking crises, but the agriculture sector takes about five years to recover.

Economics was the overarching theme in my Contemporary Business course this week, with inflation being a key player. Inflation has its hand in everything. For agriculture, Kofi Britwum - Assistant Professor of Farm Management at the University of Delaware - writes that inflation has increased the cost of "seeds, feed, fertilizer, fuel, utilities, equipment repair, and more" (2024). This affects both farmers and shoppers, as prices are both absorbed and passed. As this wave of inflation decreases, what should be done in the future to help both our producers and consumers mitigate the cost changes? Here is the article I cited, if you'd like to read more: https://lnkd.in/eTzNYHGm

Navigating Agricultural Markets in 2024: A Strategic Outlook As we progress through 2024, the agricultural sector faces a multifaceted landscape shaped by economic shifts, environmental challenges, and global political dynamics. While net farm income in the U.S. has softened after several years of record highs, the sector remains resilient, highlighting the need for strategic risk management as commodity prices stabilize. Weather patterns continue to play a critical role, with mixed outcomes across the U.S.—drought in some regions and favorable conditions in others—affecting crop yields and influencing global markets. Meanwhile, South Africa’s agricultural prospects are buoyed by positive planting predictions, though political and economic uncertainties introduce significant volatility. On the political front, regulatory changes in the U.S. focused on farmworker protections reflect a growing emphasis on sustainability and safety, despite facing opposition. Similarly, South Africa’s ongoing efforts to stabilize its economy and address political challenges are crucial for the sector’s growth. As we navigate these complexities, staying informed and adopting a proactive, strategic approach will be key to capitalizing on opportunities and mitigating risks in this dynamic market environment. #Agriculture #MarketTrends #RiskManagement #GlobalTrade #Sustainability #EconomicOutlook

🌾📈 New on Southern Ag Today: "GDP and the Farm Economy" 🌱💼 Dive in to understand how shifts in GDP can influence everything from crop prices to farm profitability. https://lnkd.in/gsDsUeSS