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
According to the Louisiana Department of Agriculture and Forestry, fire crews remain on alert statewide as Red Flag conditions persist. Officials warn that even contained fires can reignite quickly under current weather conditions.
Glyphosate and phosphorus are deemed critical to U.S. national defense, ensuring farmers’ access while signaling a shift toward regenerative agriculture. RealAg Radio host Shaun Haney shares insight on the Trump Administration’s move and what it could mean for U.S. farmers moving forward.
UNL Extension’s Troy Walz discusses the Nebraska Ranch Practicum, where sessions are held, how producers can get involved, and what ranchers can gain from participating in the program.
The Ranger Road Fire in the Oklahoma Panhandle is now 65% contained after burning nearly 300,000 acres over the past week. Kevin Charleston of Specialty Risk Insurance Agency discusses wildfire recovery, livestock insurance considerations, and the importance of preparedness for producers across the Southern Plains.
Ag leaders say President Donald Trump’s State of the Union is unlikely to spark major agriculture headlines, but ongoing tariff uncertainty and trade policy remain key concerns, as does the debate around glyphosate and the status of the next Farm Bill.
Cotton jassid, a invasive pest, is raising concerns for Southeast cotton growers as experts work to understand its impact this season.

LATEST STORIES BY THIS AUTHOR:

Weskan Grain CEO Will Bramblett discusses the antitrust lawsuit filed by grain farmers and agribusinesses, and its potential implications on rail competition and market access.
RealAg Radio host Shaun Haney shares insight into Canada’s trade push in Mexico and what it could signal for agriculture and the USMCA moving forward.
Lawmakers request information from CEO Scott Stump over sponsorship concerns and potential implications for the organization’s nonprofit status.
Roger McEowen with the Washburn School of Law reviews key highlights from the House Agriculture Committee’s latest farm bill proposal.
Ethanol output is improving, but weak domestic demand and export headwinds temper optimism about corn demand. Renewable Fuels Association President & CEO Geoff Cooper discusses the latest developments on Federal approval of year-round E15.