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CoBank report: Trade policy uncertainties continue to weigh on ag economy
A fourth quarter economic outlook report from the cooperative bank CoBank says strong growth in both the U.S. and global economies will support increased demand for U.S. ag products through the end of the year.
“However, U.S. agricultural exports are going to continue to face headwinds due to trade policy uncertainties and the strong U.S. dollar,” says CoBank ag economist Will Secor.
He says the leading risk for U.S. agriculture is the trade dispute with China, with soybeans being affected the most. But he says U.S. pork and cheese exports are also suffering from Mexico’s retaliatory tariffs.
“And that, short-term, is going to continue to be a headwind for those sectors, on the export side.”
Secor says rising output from the U.S. ag sector is the other major factor compressing agricultural margins.
AUDIO: Will Secor
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