Jan 8, 2019

Washington State Farm Bureau Report

By: Bob Larson

Download Report: Farmer_Mac_on_2019_Pt_2.mp3

I’m Bob Larson. Yesterday, we were introduced to Jackson Takach, Director of Economic & Financial Research with Farmer Mac, the brawn behind ag lending.

Takach says after some lean years, 2019’s farm economy could be coming around …

TAKACH … “Yeah, we certainly got a lot of good movement in trade negotiations, so getting through the

NAFTA 2.0, as I’ll call it instead of the USMCA, but we got some deals with Europe and Japan and, kind of, in Korea, so all these things are very positive for both the U.S. economy as well as U.S. agriculture. Really, if we can get through this China, the last thing that’s between the U.S. farm economy doing well and not doing well is this China deal. So, if we can get a little bit further there and maybe drop some of the steel and aluminum tariffs, I think it will be, 2019 could be a much better year for U.S. agriculture, if we can get through that. Because, we do have more outlets for some of our products through some of these new trade deals.”

Takach says that could include beef, pork and poultry producers …

TAKACH … “I think the protein sector could have a decent year, for the protein sector. As feed prices go down, as commodity prices go down for feeds, that tends to be a net benefit for the protein sector. So, as long as Americans are feeling good about their pocket books, which they tend to be, they’re going to eat more beef, they’re going to eat more pork and poultry, and if the world economy can pick up a little bit, it could be a decent year for the protein sector.”

Takach says communications is key so be sure and let your lawmakers know how you feel in the year ahead.

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