News

Confidence in agri-food system declines

Michigan food and ag leaders’ confidence in the overall agri-food system is starting to decline.

Economist Bill Knudson with Michigan State University tells Brownfield the Michigan Agriculture and Food Index twice a year surveys 100 ag and food leaders across the state.  For the first time in three years, the December survey showed a dip in confidence levels, dropping from an all-time high of 147 to 133.  A rating of 100 is considered neutral.  Knudson says while the latest survey is lower, overall it’s still positive.

“I do believe that, relatively speaking, people in Michigan are a little bit more optimistic than they are in other parts of the country.” He says recent expansions in the state’s livestock and dairy sectors have kept attitudes positive in the past.

In the year ahead, Knudson tells Brownfield the outlook also depends on the global economy. “I think you’re seeing a wide spread retreat in commodity prices, not just agriculture, but oil, copper, things like that as well—so I think that’s going to be a drag.”  Over the next six to twelve months he says investments might be lower, but he expects that to pick up over the next three years.

AUDIO: Interview with Bill Knudson