Farmers need to go back to the basics to manage today’s markets, according to an economist

The markets have seen their share of ups and downs lately, making risk management all the more important.

One ag economist says all farmers need to go back to the basics.

“Let’s go back to some core basic strategies that we can pull out of the bag for our marketing plans. One of those is to recognize that, number one, you, as a farm manager, are not fast enough to chase the marketplace. Things are happening so quickly. The volatility is so high that you can’t chase the market, so the challenge is how do we try to get out in front of this?” said Frayne Olson.

Olson says farmers need to sit down and crunch the numbers, then decide what price they are willing to sell at.

“And a lot of that is based on your cost of production and the cost of storage. Those are things that you know and have much more direct control over.”

Olson adds that placing orders ahead of time can help you capitalize on acceptable prices, saying it helps avoid impulsive decisions during market volatility.

Related Stories
Smaller slaughter numbers across beef and pork signal tighter supplies into late 2025, while record-low veal production highlights ongoing structural changes in the sector.
Beal joined us on Friday’s Market Day Report to discuss her election to NASDA’s presidency, challenges facing American agriculture, and her background as a Mainer and dairy farmer.
Chad Rezniek with the Colorado AgrAbility Project joined us as part of National Farm Safety and Health Week to discuss the growing need for behavioral health support in rural communities.
Potash has seen the most significant decline, falling 11 percent over the same five-year period.
China’s buying decisions continue to be a critical factor in shaping cotton prices and export opportunities worldwide.
Lower inventories and cautious farrowing plans suggest tighter hog supplies into 2026, keeping producer margins sensitive to demand trends and health risks.

LATEST STORIES BY THIS AUTHOR:

Farm CPA Paul Neiffer outlines how producers should navigate evolving Farm Bill provisions and prepare their operations for the next crop year.
Peel says Mexico has a much greater capability to expand its beef industry than it did 20 or 30 years ago in terms of its feeding and packing infrastructure.
Record crops are increasing grain storage needs, prompting safety experts to remind producers of the risk of grain bin entrapment during harvest.
Join the conversation on RURAL AMERICA LIVE — Tonight at 7:30 PM ET, only on RFD-TV.
Heidi Exline with American Farmland Trust shares how their Farm to School initiative helps strengthen the connection between local farms and school food programs.