Home Economy USDA: Strong U.S. economy but falling crop prices in 2022

USDA: Strong U.S. economy but falling crop prices in 2022

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The red-hot U.S. recovery from the pandemic, with the fastest economic growth rate since 1984, will moderate to a still-strong 3.5% in 2022, said the USDA in its first look at the agricultural economy in the new year. Farm-gate prices for corn, soybeans, wheat and cotton, the four most widely planted crops, were projected to decline as production, suppressed by the pandemic, catches up with demand.

Overall, economic conditions will be favorable in the coming year, according to USDA data released on Friday. Inflation, a worrisome 5.4% in September, was projected to slow to an annual rate of 2.5%. Interest rates would rise slowly and crude oil prices, which soared this year, would stabilize. U.S. unemployment would average 3.8% for the year. It was 3.5% just before the pandemic.

With commodity prices high and farm exports at record levels, farmers will plant an additional 2.1 million acres to the eight major field crops, the USDA projected…

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