“The current prosperity in American agriculture is not a flash in the pan,” Mike Dwyer, director of global policy analysis, Office of Global Analysis, Foreign Agricultural Service of the Department of Agriculture, recently said.
The outlook for the future was put in a nutshell by Dwyer as part of an interview captured by ZimmComm News. The positive outlook is based on a number of current situations.
“It is largely built on strong global demand, a fairly weak dollar and the fact that the world cannot seem to respond fast enough with more production to push prices down. We have stock levels that are at very, very low levels; so, any supply disruption gets magnified in the commodity futures market.
“But at the end of the day, we see Chinese demand, Southeast Asia demand and Latin American demand growing so quickly over the next few years, as their middle classes expand, that the current price environment is not likely to give way to old price patterns where they go up for a year and crash back down to historical lows again.
“We think this time it is different. We think prices over the next 10 years will be significantly higher than the previous 10 years.”