Recession fails to dampen outlook for US agribusiness

While little more than a third think the American economy will rebound in 2010, a majority are optimistic or very optimistic about their own businesses, with only 9% having a pessimistic outlook.

US crop producers had a more positive outlook for their companies than did livestock executives, with the sector's share of optimists at 65% and 40%, respectively. A majority of respondents predicted a drop in swine production.

The average 2010 corn price predicted by respondents was $3.30 a bushel, but a significant share--almost a quarter--thought prices would hit more than $4 a bushel.

The ratings of U.S. agribusiness companies are likely to remain stable due to their well-diversified product lines and geographic footprints. Diversification tempers the severity of earnings volatility, and internally generated liquidity and cash flow for US agribusiness companies have given them an advantage as a result.