Special Report

The impact of the global economy on ag

An economist says the current global economics could create additional challenges for the ag sector in an already tight economy.

Yale and Harvard lecturer Dr. Vikram Mansharamani says today’s trends toward populism could impact agriculture’s value chain.

He tells Brownfield that would result in a more challenging business environment.  “Drivenn in large part by a populist politics that’s going to try and support the 99 percent rather than the 1 percent,” he says.  “Is it conceivable that we see higher minimum wages – yes.  Is it conceivable that we see a demand for more support, more social safety nets – a greater burden on employers – yes, that’s possible.”

Mansharamani says he anticipates a return to a more globalized economy and that’s good news for the long-term viability of agriculture.  “US agriculture is among the most productive agriculture in the world,” he says.  So I think regardless of what we see economically, the long-term for US low-cost, highly productive agricultural producers in highly optimistic.”

Mansharamani spoke with Brownfield at Bayer’s AgVocacy Forum ahead of Commodity Classic.

AUDIO: Dr. Vikram Mansharamani