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Ag economist warns Middle East conflict has economy teetering

An agricultural economist says ongoing uncertainty in the Middle East has the global economy on edge.

Dr. David Kohl, professor emeritus with Virginia Tech University, tells Brownfield, “We’ve got the Gulf War, $4 gasoline, $5 diesel, $100 barrel oil, and 15-week duration.” He says, “That could throw us into a recession. It could put us into a global recession. So, we’ve got some of those metrics now. Does it last?”

He says diversified agricultural operations stand to better weather whatever economic storm may be looming.

“The real good managers still eke out a profit. It’s a base hit; it’s not necessarily a home run.”  He says, “But as I crisscross the country, what’s in right now is diversification. Three to six sources of revenue. Sometimes it’s crop, livestock, sometimes outside jobs. That seems to be the sweet spot.”

Kohl says established operations likely have more equity built to help overcome shortfalls, however he’s concerned new and beginning farmers may face even greater challenges in the current economy.

AUDIO: Dr. David Kohl