Economic guru Jim Rogers states that as the number of farmers tumbles, so will the supply of anything that is farmed.
Rogers says decreased supply and heightened demand will create the agricultural boom.
"No one wants to be a farmer anymore, as compared to the past, when farmers were like masters of the universe for a long period of time," Money Morning recently quoted Rogers as saying.
"The agriculture sector has been a disaster for 35 years. Things are so bad. The average age of an American farmer is 58, the average age in Japan is 68. And do you know that the highest suicide rate in the UK is in the agricultural sector?"
Rogers predicted China, India, Russia, and other Asian countries will continue to fuel demand growth.
"There will be an imbalance in the future between demand and supply in agricultural commodities… and that will drive prices higher," said Rogers.
Meanwhile, Republican U.S. senators are working with some of the world’s biggest agricultural merchants to undo a last-minute provision in the tax overhaul that threatens to distort the grains market and starve private firms of corn, soy and wheat supplies.
It was included during final revisions of the tax bill that passed the Republican-controlled Congress last month. The restructuring of the tax code, the biggest in 30 years, handed President Donald Trump his first major legislative victory since taking office, Reuters explained.
The provision gives farmers a 20 percent deduction on payments for sales of crops to farmer-owned cooperatives, but not for sales to private or investor-owned grains handlers such as global firm Archer Daniels Midland Co.
The modification was introduced to compensate co-ops and their farmer owners when Congress eliminated a part of the tax code, known as Section 199, which had benefited them for more than a decade.
(Newsmax wires services contributed to this report).
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