Governor’s Ag Summit Focuses on Ag Economy and Trade
July 13, 2015
July 13, 2015
This year’s South Dakota Governor’s Agriculture Summit discussed the challenges and opportunities for growth in the state’s agriculture industry. One focus was on the current and future state of the ag economy.
Dr. Brent Gloy of Agricultural Economic Insights believes the ag financial situation is still holding. He noted that credit delinquencies (the share of delinquent real estate loans and non-real estate loans) in the ag sector are not spiking upward, but are at all-time lows.
“The data right now is showing that the financial situation in agriculture is still strong. Can that change? Yes. Those things can go up pretty fast. But right now, we go into this economic downturn in a pretty strong financial condition overall.”
Dr. Stephen Meyer, the Vice President of Pork Analysis, looked at the livestock and meats perspective. He said the 2015 crop is very important to producers.
“Fewer corn acres, more soybean acres, great conditions in much of the west, bad conditions in the eastern Corn Belt. It’s a toss-up right now where we’re going to be relative to trend yields.”
The Free Trade Agreement is seen as a key to continued growth in agricultural trade. U.S. Senator John Thune told the Summit that Trade Promotion Authority that has been passed by Congress and signed by the President will expedite the trade process and give direction to our trade negotiators.
“We have two that are teed up right now: The Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership, the European trade agreement. Both of which could open up enormous opportunities for American agriculture. And neither will get done without Trade Promotion Authority. That’s why it was so important that we passed that.”