Britain’s decision to leave the European Union could “unleash a series of dominoes” across ag markets, says Mike Steenhoek, executive director of the Soy Transportation Coalition.
“Where the end of that leads, it really is up to debate,” Steenhoek tells “Top Producer Podcast” host Pam Fretwell. “But the net result is greater unpredictability.”
U.S. ag producers likely will see the implications of Brexit in the form of market volatility and competitive challenges for ag products abroad. “Capital will flee to [what are] perceived to be safe havens, and the U.S. dollar is certainly regarded as one of those,” he says. “All that does is increase the value of the U.S. dollar compared to other currencies. [It] diminishes our competitiveness to export.”
A perceived lack of representation in Brussels, the political heart of the EU, is among factors that left voters in the United Kingdom seeking an out, Steenhoek says. “It’s not just a matter of going to lobby my member of Parliament. The Brussels government really wasn’t as responsive to those various member countries. People regarded it as insulated.”
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