If there’s any assurance about the economic picture for the dairy industry and agriculture in general going forward in the next few years, it’s that volatility will be a constant. That’s according to David Kohl, PhD, Professor Emeritus in Agriculture and Applied Economics at Virginia Tech University, Blacksburg, Va.
Kohl recently told the audience of the Ag Outlook 2024 conference, hosted by eastern Iowa rural lender Hills Bank, that today’s agricultural realities of mostly low commodity prices, steep input costs, and higher interest rates are putting the squeeze on margins after a handful of profitable years.
He said the global economy is in a downturn, citing current recessions and/or stalled economies in China, Great Britain, and Germany. And in 2024, half of the world's population will go through a national election, with India, Mexico, Russia, and the U.S. all in an election cycle that could dramatically affect global trade.
By MAUREEN HANSON
March 18, 2024
