U.S. agriculture is facing longer-term economic pressure rather than a typical boom-and-bust cycle, according to USDA Chief Economist Justin Benavidez. Speaking in Washington, Benavidez says a growing imbalance between rising costs and returns has shaped the farm economy. “What we’ve been in, if you look at the last 15 years of farm economics, is a sustained divergence in input costs and returns to output with brief moments of uncertainty that have injected some profitability.” That dynamic requires a shift in how policymakers and industry approach solutions. “Rather than talking about some short-term solutions to get us out of quick fixes, we’ve got to talk about ways to, in the long run, expand demand, find cheaper input costs, and a variety of solutions that are gradual.” He points to growing biofuel demand and new market opportunities as part of that strategy, but warns progress will take time.
