Inflation is expected to shrink, according to CoBank
CoBank predicts the U.S. economy will slow through the first half of this year and inflation is expected to diminish. However, this also means crop and livestock prices that producers receive could be weaker.
Rob Fox, director of the Knowledge Exchange Division with CoBank, says, “As those geopolitical concerns kind of simmer down and, assuming we don’t have any nature droughts in the world in the coming year, which is a big assumption, we’re looking at crop prices to come down quite a bit, meaning 2023 should be a fairly decent year, you know, profitable, but not at those near-record levels.”
When it comes to input costs, CoBank expects many of those prices to ease within the near future.