Optimistic View of Ag in 2012 Dimmed by Continued Attacks on Business

Looking at the success of U.S. agriculture in 2011, it would be very hard for our members not to welcome 2012 with far more optimism than most small manufacturers and business in general.

According to USDA the expected net cash farm income for 2011 will be up nearly 19% over the previous year at $109.8 billion and $34.2 billion above the 10-year average of $75.6 billion. USDA figures show the 2011 inflation-adjusted forecasts of net value agriculture added to the U.S. economy and net cash income, are the highest values recorded since the early 70s. These trends point to at the very least, a decent agriculture and farm equipment market in 2012.

Dave Kanicki, Executive Editor for Lessiter Publications’ Farm Equipment magazine believes if historic farm spending patterns hold true in 2012, ag equipment dealers and manufacturers can expect another outstanding year for machinery sales. Overall, the magazine’s “2012 Business Trends & Outlook Survey” indicates that over half (55.3%) of North American dealers expect revenue from new equipment sales to increase by at least 2% to more than 8% in the year ahead, compared with 2011. This compares with 47.9% of North American dealers who projected increased sales of new equipment in 2011 vs. 2010, and only 24.4% who expected 2010 sales to surpass those in 2009.

Terry Kastens, emeritus professor in agricultural economics for Kansas State University said, “Basically, farmers are coming into these businesses and just opening their wallets. For machinery dealers, this is the best it’s ever been in their lifetimes. It’s natural that everyone expects the outrageously good returns of the past year to ease — when things are fantastic, you expect them to become less fantastic.”

With all that said, it’s clear there are always a series of threats to remain watchful of during the coming year. Since 2012 is a presidential election year, it adds the spin of presidential politics into every political and business decision made.

It seems that the Obama Administration’s attack on business is far from over, with the President’s questionable “recess appointment” of three new members to the National Labor Relations Board (NLRB) while the U.S. Senate remained in pro-forma session. Under this Administration, the supposedly nonpartisan NLRB has become a partisan arm of Big Labor, and the President made it clear this week that it will continue in this election year.

Bruce Josten, the chief lobbyist for the U.S. Chamber of Commerce, denounced the recess appointments as political favoritism and said they will “further poison the well” at the labor board. Lawyers for several business groups are now exploring their legal options to challenge the recess appointments.

“We are considering all possible legal recourse. We believe it’s clear the president has violated decades of precedent and possibly the Constitution,” said Geoff Burr, vice president of federal affairs for the Associated Builders & Contractors.

Burr is chairman of the Coalition for a Democratic Workplace. The coalition is suing the NLRB over its proposal to speed up union elections, as well as another rule requiring employers to post notices informing workers of their organizing rights.

Other business lobbyists were also mulling legal action. “NAM will consider all options to put a halt to this, including pursuing legal action,” said Joe Trauger, vice president of human resources for the National Association of Manufacturers (NAM).

During this coming year it’s our hope that enough good news will come from agricultural to out weigh what continues to be an onslaught of anti-business rulings and regulations coming from the current Administration in Washington.