Christina Pope

Effects from higher interest rates are permeating rural industries

The war in Ukraine and inflation will remain the two biggest factors for commodity
markets in the first half of 2023. 

The Russia-Ukraine war, surging inflation, and an energy crisis joined the COVID-19 pandemic this year as major events defining the operating environment for U.S. companies. We can expect to feel the aftershocks in 2023. 

Despite ongoing impacts from Russia’s invasion of Ukraine and lingering supply chain
effects from the pandemic, the U.S. economy remains incredibly resilient.

Fears of higher rates and weakening economic conditions
linger over the year’s second half.

Against all hope for a better start to 2022, omicron has crashed the New Year’s party. Renewed supply chain disruptions are being felt throughout the economy, causing empty shelves again and threatening to fan the flames of inflation.

As we enter the third year of the COVID-19 pandemic, the virus is still in control of the economy.

Businesses of all sizes and across most industries are wrestling with perhaps the worst supply chain bottlenecks to date

The long-awaited period of pent-up, exuberant demand is here. And for all the benefits to businesses and consumers, bumps are unavoidable – labor shortages, price inflation, supply chain disruptions, and uncertainty about what a new steady-state economy will look like. They loom large, even as we celebrate a return to normalcy.

Anticipation of a return to normal is in the air. But for the economy and rural industries, there will be no going back to pre-COVID conditions.

2021 has quickly altered the political and market landscape. And optimism, particularly about the second half of the year, is rising. But to get there, all of us must muddle through for a few months more.

The coronavirus pandemic has now impacted all four quarters of 2020, and seemingly every aspect of life and business. 

Over the past four months, every rural industry has grappled with how to adjust its business to remain relevant and sustainable in the pandemic. Agricultural supply chains have been massively disrupted and lost revenue. Water and power suppliers have adapted as commercial and industrial customers went dark and demand shifted to residential customers. And the communications industry is seizing a moment when home broadband access has become vividly essential, to help expand access to everyone, everywhere.

The beginning of a new quarter finds us in unparalleled times – a pandemic ravaging the world, the U.S. economy in shutdown, millions of Americans out of work, and financial markets in turmoil. 

The fourth quarter is ending with much more optimism on trade and the economy compared to how it began. 

Uncertainty over trade policy, weather and African Swine Fever dominated agricultural markets last quarter.

Global economic growth continues to slide, as tariffs drag on global trade and manufacturing.