Forecast & Trends
Dr. Ernie Goss, professor of economics, Creighton Univ., told executives attending the April 1 Farm
Equipment Manufacturers Assn. Spring Clinic in Tampa, Fla., that agriculture is “positioned for perfection.”
Goss, who monitors ag markets closely as part of the Rural Mainstreet Index, gives three main reasons why he remains bullish on the long-term prospects of agriculture:
1. Fast growth for emerging economies (including China and India) — ”Food demand income is elastic,” he says, noting that when income is up 8%, food demand may increase by 12%.
2. Cheap dollar — “A weak dollar makes U.S. food more competitive abroad.” He says that for every
10% decrease in the value of the U.S. dollar, beef prices rise 9-12%.
3. Biofuels and alternative fuel production — Wind farms and ethanol will keep opportunities strong in ag, he says.
— Ag Equipment Intelligence, April 2011