Back again by popular demand this year at the ASTA CSS 2014 and Seed Expo was AgResource Company president Dan Basse giving his economic outlook for the year ahead.
Basse says the protein side of the plate is doing very well right now, dairy and beef in particular, “so we call it the Year of the Cow” and while grain farmers will likely struggle for the next few years, “they’ve had a very good 5-7 years behind them.”
Basse notes that this crop year is historic in that it’s the first time we’ve seen record world production for corn, wheat and soybeans. “So something agronomically is afoot here,” he said. “World producers are starting to pick up on some of the traits that American farmers are using – whether more seeds per acre, better seeds, better fertilizer…we’re not sure what it is but we’re impressed what the world is producing for grain.”
At this point, Basse thinks “we’re farming more and more for the government” and he stressed the importance of farmers looking carefully at their choices of farm bill programs for the coming year. “If you like the PLC decision, you would have a more bearish outlook on grains for the next five years,” he said. “ARC may give you some extra income for the nearby years.”
Lots more in this interview with Basse here – a condensed version of his one hour breakfast presentation at CSS. Interview with Dan Basse, Ag Resources