LUBBOCK, TX – There’s concern among farmers and ranchers about the potential for systemic inflation as supply chain bottlenecks and product shortages lead to increasing prices nationwide.
Currently, the 2021 net farm income forecast remains well above the levels of the past five years which is encouraging for American producers who suffered through an agricultural recession. The concern however is with the increasing cost of inputs, which mutes the increase in commodity prices.
Dr. Heather Boushey is a member of the White House Council of Economic Advisors and tells All Ag News that inflation is on the screen of economists, and President Biden.
Dr. Boushey on Agribusiness Report:
On whether the latest increase in inflation can be compared to what we saw in the 70s or 80s, Boushey says she doesn’t think so because we’re not seeing a corresponding increase in wage trends as well. “It is really more akin to what happened after World War II, where you saw a bit of a spike, and then it came back down” Boushey explains, “so I think that is really the proper comparison”.
(SOURCE: All Ag News)