Agricultural Economist Warns Center East Warfare Shakes Financial system – Brownfield Ag Information
Agricultural economist warns that the war within the Center East is shaking the financial system
Dr. David Kohl on the 2025 American Bankers Affiliation Agricultural Bankers Convention. (Deserted box picture)
An agricultural economist says the present uncertainty within the Center East has the worldwide financial system on edge.
Dr. David Kohl, professor emeritus at Virginia Tech College, tells Brownfield: “We have the Gulf War, $4 gasoline, $5 diesel, $100 a barrel of oil, and a duration of 15 weeks.” He says, “That could lead us into a recession. It could lead us into a global recession. So now we have some of those metrics. Will it last?”
He says different farming operations will higher climate any coming financial typhoon.
“Really good managers still eke out profits. It’s a hit; it’s not necessarily a home run.” He says: “But as I go around the country, what there is now is diversification. Three to six sources of income. Sometimes it’s crops, livestock and sometimes outside jobs. That seems to be the sweet spot.”
Kohl says established operations most probably have extra capital constructed as much as lend a hand conquer shortfalls, alternatively, he worries that new and starting farmers may face even larger demanding situations within the present financial system.
AUDIO: Dr. David Kohl
Tags: agricultural economics, starting farmers, commodities, conflicts within the Center East, diversification, financial system, world financial system, world recession, Cattle, Center East, war, Recession, Younger farmers
