Economy on the rebound?

Whether the economy is, in fact, rebounding is yet to be seen, according to Vince Malenga, LaSalle Economics.

Speaking at the MID-CO summer meeting in Fontana, Wisc., Malenga said the next three to four months will see a significant improvement in the GDP. "People are underestimating the boost in the GDP in the third quarter," he said. The jump in the GDP is fueled, in part, by the Cash for Clunkers program, which sold 250,000 cars in July alone. "This trickles through the economy," he said. "With the auto industry under-inventoried, the boost in demand will lead to increased (auto) production in the second half of the year."

Although Malenga focused on the near-term third quarter, he said the question remains: what happens in the fourth quarter and beyond? The answer to that question is still unfolding.

Mid-year update

The 2009 MID-CO summer meeting, held August 1-4 in Fontana, Wisc., offered attendees a high-level look at crop production, politics and legislative issues, and the economy.

Steve Freed, ADM Investor Services, told participants although some areas of the U.S. did not get a crop planted, "Iowa, Nebraska, North Dakota, and Minnesota, have had near perfect crop conditions." He said that lends support to those who are calling for a near-record corn crop.

Freed said China will continue to be a factor in world markets, due to internal constraints. "They're running out of water," needed to produce a good crop, he said.

In an overview of issues and politics, Jim Wiesemeyer, Informa Economics (www.insidewashingtontoday.com) said, "the power structure is changing. This is the most White House-centric administration since Reagan." That means all cabinet level positions will take their cues from the White House.

In USDA, Wiesemeyer warned participants to watch USDA Secretary, Tom Vilsak. "He is a very different personality. Production agriculture is not a top issue," with him. Rather, he's focused on farmers markets, sustainability, and organic agriculture.

Wiesemeyer also issued a warning about the Attorney General's office, and Christine Varney, the assistant attorney general in particular. Wiesemeyer said the AG's office will have an increased focus on mergers, including agriculture, railroad and seed companies, which will put many companies on their radar screen.

Top issues in the Obama administration include health care reform, climate change, food safety reform, financial regulation reform, and immigration reform.

Farm Progress Show 2009

The 2009 Farm Progress Show will be held in the Decatur, Ill. permanent site on September 1 – 3.

The FS brand will be strongly-represented at this well-attended ag showcase. If you plan to attend, you are certain to see the rows of FS Flags greeting visitors upon entering Progress City. Throughout the grounds, FS is acknowledged as the official on-site Fuel Sponsor, as well as the official Agronomic Supplier of the highly visible field demonstration plots.

On August 31, three familiar voices will be heard on the 10 a.m. radio show, AgriTalk, hosted by Mike Adams. This pre-show special will feature interviews from Randy Holthaus on FS Grain Systems; Matt Hynes on FS Seed; Mark Dehner on Liquid Fuels including Dieselex Gold and biofuels. For a list of AgriTalk station affiliates, go to http://www.agritalk.com/stations.php

The FS Exhibit lot is at the corner of 11th and Central Progress, in Progress City, where members greet their customers and interact with other ag community leaders. Activities there reflect the casual and engaging atmosphere of the Farm Progress Show, including entertainment by family-friendly comedian Tim Cavanaugh, remote control car races, and NH3 safety education conducted by Jenny Poole, from GROWMARK Safety & Insurance Services. Displays for FS Grain Systems, Fuels, Propane, Agronomy & FS Seed demonstrate to visitors why FS is The Local Answer to Your World of Needs.

For other information about the show, go to http://www.farmprogressshow.com/