Agriculture industry, stronger in a bad economy?

We’ve all heard ad-nauseam about the massive layoffs, down economy and troubled times. I read an article in Bloomberg this afternoon about the DuPont Co, the third biggest chemical maker, reporting Q4 net losses at $629 million. The article attributes this to the reduced demand for construction and automotive products. No surprise, right?

What’s surprising is this excerptAgriculture was the only segment to increase full-year earnings.

Now I’m no financial analyst but when segments are up in bad times I tend to pay attention. Makes you wonder what is making the difference for the ag industry? There are a lot of factors that have gone into making farmers more productive. Bigger, more advanced equipment, precision farming, more accurate use of fertilizer – and better research on crop genetics and breeding (beyond just the GMO side).

It would appear that technology may be the antidote for agriculture in a down market.

Farmers are able to produce more, and well, quite simply, people and animals have to eat.

What do you think? Is the agriculture industry better poised to handle down times than other industries?

Author: Josh Fleming