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NAFTA out the window?

 

An ag economist is not too optimist about a renegotiated North American Free Trade Agreement.

Todd Hubbs with the University of Illinois recently spoke to farmers as part of the Illinois Farm Business Summit where he warned it’s not a matter of if the U.S. withdraws from the agreement, but when.

“A pull out of NAFTA is not a good scenario for agriculture.  I think agriculture has let the administration know that.  Having said that, it feels like it’s more and more likely that it might occur, so we’re going to have to deal with it.”  He tells Brownfield the next six months will be crucial in determining if the U.S. is able to come to terms with Canada and Mexico, and the repercussions of pulling out would not only cause upsets with those trading partners, but also in the confidence of other countries buying from the U.S.

Hubbs says if farmers see a price that is profitable in 2018 they need to pull the trigger.  “Know your costs, know your margins, and know what makes you a profit.  If you get a chance to price crops at a profit, you should do it.”  He says he doesn’t expect any major rallies in the market this year, but keeping a close eye on price movement will help farmers stay afloat.

AUDIO: Interview with Todd Hubbs during DeKalb, Illinois Farm Economics Summit

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