Friday’s job report surprised the experts as 255,000 new jobs were created in July, well above expectations. Per hour income rose as well. With the stock markets sitting at or near record highs analysts hope overall economic growth may rise in coming months. But domestic economic growth doesn’t mean as much for agriculture. Farm Bureau Economist Mike Doherty says agriculture rises and falls due to worldwide economic and population growth.
Over the years, farmers have been able to increase production fast enough to keep up with growing demand, but with rising productivity, both in the U.S. and in other ag exporting countries, like Brazil and Argentina, we may be doing too good of a job.
Mike Doherty says we need to maintain improve our transportation infrastructure, especially river transportation, if U.S. farmers are to remain competitive with South America and other low cost production areas around the world.