Global economy poised for increased costs

Just a few months ago things were looking up. The economy was recovering, consumers were spending, we had a record corn crop in the ground, and both cattle and poultry producers were looking to rebuild and expand production. Then the economy took a nosedive in the second quarter, and a drought decimated the corn crop. Gross domestic product grew at just a 1.5-percent annual pace in the second quarter of 2012, down from 2-percent growth in the first quarter and 4.1 percent in the fourth quarter of 2011. Analysts blame some of the slowdown on uncertainty over the upcoming election and fear of January’s approaching fiscal cliff of higher taxes and reduced government spending. However, high unemployment, a stagnant housing market and the global economic slowdown are probably the main culprits. Read More