Predictions for Agriculture in 2018
With all the predictions coming out from the gurus and pundits of Wall Street, I thought I'd come up with my own list for the agriculture space. I give a 50% or more chance these will come true. Would enjoy hearing your thoughts -- agree or disagree?
1. Agricultural commodity prices start to show some life. Farmers rejoice after years of slumping prices in what will turn out to be a sneak preview of what’s ahead in the years to come.
2. Interest rates continue to rise at a slow, calculated pace in the U.S. The ECB wakes up and begins to raise rates. As a result, the U.S. dollar declines in value further supporting agricultural commodity prices.
3. Input prices (e.g. fertilizer) rise faster than expected.
4. Agriculture tech companies consolidate with more M&A activity. Ag tech start-ups that get left behind face the prospect of a recession by the end of 2018, a first for many founders.
5. Indoor farm tech companies expand outside the United States at an even faster pace, particularly in Asia and the Middle East.
6. Despite the recent tax plan, income inequality continues its rise in the United States. Food insecurity and malnutrition make headlines.