With the election now in the rearview mirror, Washington D.C. ag economist John Newton talks about the road ahead for ag producers.
As new presidential and congressional administrations prepare to grab the governmental reins, ag professionals wonder what the new leadership will mean for the industry. Will we finally get a new farm bill? Who will be the next Secretary of Agriculture? Will we get clarification on nagging questions about biofuels? Will producers continue to face rising input costs and low commodity prices?
Newton sees opportunities for improving the industry’s financial outlook with new leadership in place. On the latest episode of the Unscripted podcast, Newton asks, “What needs to happen to turn this around?” He answers his question with “it all starts with demand.” Noting that corn exports have been strong, he says, “All eyes are going to be on this next administration for how we proceed with agricultural exports to our top markets.”
Increasing exports can give the ag economy a much-needed boost, and he’s optimistic about that possibility. “I’m focused heavily on the opportunities we have ahead of us in U.S. agriculture,” he says. “We’re the best in the world at what we do, we have the highest quality products, we just need an opportunity to deliver those products to the global market.”
He also has a positive outlook on the long-awaited farm bill, which currently remains in the hands of the lame-duck Senate ag committee.
“I’m optimistic we can get it done, but the clock is ticking,” Newton says. “There’s an opportunity to do something bipartisan for ag, for rural America. From updated crop insurance to risk management tools to funding for rural childcare and health care to ag trade promotion programs, the bill could address many persistent issues that producers face. The list is long.”
While he recognizes the major obstacles for the ag economy, he’s also optimistic about the candidates for the next ag secretary. “There are a number of highly qualified people on the list,” Newton says. “It’s important to have somebody in that seat who works well with agriculture and is a good ambassador for us in the Oval Office.”
EDITOR’S TAKE:
John Newton lays out the top-of-mind issues for many farmers/ranchers these days. Now that the election is over, attention has shifted to what will be done to create a brighter future and restore agriculture to its rightful place at the table for much needed policy discussions. One thing that is rather cloudy, in spite of his optimism, is passage of a new Farm Bill in the lame duck session. The senate democrats and house republicans who currently control congress have not been able to bridge the gap on key policy issues and budget. Personally, I believe it will be challenging to move forward until the new congress is sworn in this coming January. The good news is farmers and ranchers will survive and be looking for those new or qualified used trucks and SUVs as tax season approaches. Be sure to advertise your inventory on AgTruckTrader.com® now!
