As commodity prices continue to struggle and inflation pinches every producer’s budget, some ag economists foresee the possibility of an industry-wide recession. Others believe it has already begun. Can the upcoming elections change the economic climate? And can producers do anything to help protect their businesses? The latest Unscripted and Grow Getters podcasts provide some answers.
Long-time Washington D.C. insider Jim Wiesemeyer joins Tyne Morgan and Clinton Griffiths on Unscripted, to share insights about the presidential race from an agriculture perspective. He believes the critical issues are trade, taxes and environmental regulations.
“On biofuel tax incentives, the Democrats are more inclined to go that way,” Wiesemeyer says. “On trade policy, they both make me nervous because we’re seeing the bulging ag trade deficit and the result of that in part being the lack of an effective trade policy of the Biden-Harris administration.” On the other hand, he explains, “We have Trump’s threatening at least 10% across the board tariffs on countries, let alone 60% higher tariffs on China.”
Wiesemeyer sees a key difference between the two candidates on tax policy. “Harris, like Joe Biden, wants to increase the corporate tax,” he says. “When corporate income taxes go up, consumers pay more because companies will take it out of wages for their employees, and they’ll also increase the prices. So it’s inflationary. That’s not well understood.”
Wiesemeyer believes that both candidates have done well in solidifying their bases of support and will need to appeal to independent voters. While that group isn’t large, it will play an important role in the final outcome. “In some states like Pennsylvania, Wisconsin, Michigan, North Carolina, Arizona and Georgia, they’re very critical,” he says.
While all eyes will be on that election in the months ahead, ag producers are also looking for ways they can control their own destinies. Some are using diversification to keep their operations healthy despite the weak ag economy. On this week’s Grow Getters podcast, DeKalb, Illinois, row crop grower Jamie Walter explains how he and his dad started their own distillery brand, Whiskey Acres, to get more revenue from their acres.
Available farmland to lease was dwindling due to nearby Chicago’s urban sprawl. “We needed to have more security in our land and needed to do more with fewer acres,” Walter tells Grow Getters host Davis Michaelsen. A self-described serial entrepreneur, Walter embraced the challenge, researching the distilling industry and finding a way to succeed. Using heirloom and other special corn varieties grown on their farm, Whiskey Acres now makes a variety of award-winning bourbons as well as rye and vodka. The distillery’s visitor center draws roughly 2,000 people per month from a number of states and even other countries.
While producers can’t control commodity prices or the economy or governmental policies, they can use their creativity and can-do work ethic to find new income sources to support their farms.
Listen to the full episode of Unscripted.
