The Year Ahead: Forces That Will Shape the U.S. Rural Economy in 2024
December 14, 2023
The U.S. economy continues to outperform expectations despite a string of adversity – the pandemic, rampant inflation, and the Federal Reserve’s extreme monetary tightening policies. The strength of the job market plus big infrastructure investments should spur ongoing economic growth in rural America. However, potential pitfalls are on the horizon: Congress continues to delay progress on the Farm Bill and trade policy while consumers are irrationally pessimistic about the future. After a two-year stretch of record profitability, the farm economy is headed toward transition in 2024: Commodity prices have slid closer to historic norms but farming expenses have not. However, global and domestic food supplies are still relatively tight, which should keep farm incomes from falling too far.
Grain, Farm Supply, Biofuels
Rise of renewable diesel to pull more acres to soybeans in 2024
Inputs remain challenging, tempering output growth potential
Dairy category will continue to grow, but exports a wild card
Food and Beverage
Consumers seek value but want sustainability, innovation and convenience
- The Global Economy: Global growth rates will fall in the era of deglobalization
- The U.S. Economy and Monetary Policy: Economic theory doesn’t care about your feelings… but should it?
- U.S. Government: Vital funding bills await dysfunctional Congress in 2024
- U.S. Agricultural Economy: High costs spell lackluster profitability for farm incomes
- Power and Energy: Geopolitical discord underscores need for energy security in 2024
- Communications: Broadband not immune to macro issues despite strong industry tailwinds
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