Economist Optimistic About Post-COVID Ag Recovery in 2021

It won’t be a huge rush to prosperity for many in agriculture in the new year, but variables are lining up to deliver a recovery for the ag sector in 2021, one economist says. A weakening U.S. Dollar Index will continue to be positive for grain and livestock export sales, especially to China, the nation’s largest ag export partner. That nation is rebuilding its hog herd and weather issues have decimated many of China’s crops, and both factors will contribute to increasing demand for most commodities in the new year. Low interest rates will also play a role in agriculture’s recovery in 2021. While stronger commodity prices will benefit producers at the farm level, federal farm payments will likely decline sharply, representing the most considerable bearish factor for farm revenue in the coming year. See more.