Forecasting 2024 - Rural Economy's Evolving Landscape

CoBank's 2024 Year Ahead Report is a handy resource for understanding the upcoming challenges and opportunities in the U.S. rural economy. The report delves into various aspects affecting this sector.

· Global Economy: The shift from globalization to protectionism is slowing down global economic growth. This change signals a new era with lower growth rates, affecting global trade and GDP.

· U.S. Economy: Consumer behavior, heavily influenced by inflation and high prices, is a key indicator of economic health. With spending power reduced, there are implications for the overall economy.

· U.S. Government: Political challenges in Congress, particularly around funding bills and the Farm Bill, highlight the complexities in legislative processes affecting rural America.

· U.S. Agricultural Economy: Farmers face challenges with high production costs, although potential upsides exist due to global demand and climate conditions.

· Grains, Farm Supply & Biofuels: The growing interest in renewable diesel and the impact of the 2023 soybean harvest will shape the agricultural landscape, influencing crop choices and market prices.

· Animal Protein: The livestock industry is grappling with high production costs, balancing domestic demand with global market conditions.

· Dairy: The sector's future is influenced by both domestic and international demand, with production growth dependent on lower feed costs and technological advancements.

· Food & Beverage: The industry is adapting to changing consumer behaviors driven by high prices, focusing on value and affordability.

CoBank's report offers a detailed perspective on the economic factors influencing the U.S. rural and agricultural sectors, providing essential insights for stakeholders as they navigate the evolving economic landscape in 2024.