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Challenges the Ag Economy Could Face in 2022

Mount Equity Group Tokyo Japan > News > Markets > Challenges the Ag Economy Could Face in 2022

It’s hard to predict the future, but there are several concerns for the ag economy in the months ahead. The macro-economy is the biggest area of interest, says David Widmar, ag economist with Agricultural Economic Insights. How things play out in 2022 will have implications longer than just this year.

“We’ve seen data coming out of the Federal Reserve that said that inflation is pretty high,” says Widmar. “Thankfully, the duration has been pretty short. A year ago, we were looking at inflation rates in the one to two percent range. How much pain inflation causes are a function of the magnitude and the duration. We have a magnitude that’s around 5, 5.5 percent. Of course, this is a concern, but we have to put it in the right context.”

The biggest economic question is what the Federal Reserve will do with interest rates and the effect it will have on inflation.

“It’s important to think about how this unfolds, and if…

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