Examining How Macroeconomic Policy Changes Impact the Farm Economy
Examining How Macroeconomic Policy Changes Impact the Farm Economy
Farmers and agribusinesses closely monitor changes in commodity and input prices, crop yields, rates of gains on livestock, the latest technology, and of course, the weather. However, changes in macroeconomic variables such as interest rates, inflation, income growth, and exchange rates, often have a much greater impact on their bottom line. To assist ag producers and farm businesses to become better managers and perhaps to aid them in influencing policymakers, this fact sheet presents some basic economic principles and graphical analyses to illustrate the potential impacts of macroeconomic policy changes can have on important variables such as farm prices, operating expenses, income, land values, and trade.
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Policy & Trade
