Agricultural Economics Department

 

Date of this Version

12-17-2008

Comments

Published in Cornhusker Economics, 12-17-08. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska – Lincoln. http://www.agecon.unl.edu/Cornhuskereconomics.html

Abstract

Planning what to grow in 2009 has many complications this year. Among the possible unknowns at the farm level are market prices for commodities, the cost and availability of inputs and the cost and availability of operating credit. I say “possible” because through contractual arrangements and forward pricing decisions you may already have locked in many of these prices for the next production cycle. Then there are a number of general economic situations which will impact agriculture. The financial recovery both here and worldwide is critical. Agriculture needs improvement in our general economy and improved consumer confidence in order to prosper. Yes, people will buy food, but they will spend more on food through buying more expensive items, more protein and more prepared meals, if they have more money in their pockets.