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
Sen. Deb Fischer, of Nebraska, mentioned that Congress pushing through year-round E15 sales will do more to help commodity growers than more farm aid, which is currently a reality.
Sen. Moran joins us to discuss the farm aid package and the financial reality faced by row crop farmers in his home state of Kansas.
Grain farms still have strong balance sheets, but another stretch of low profits will force hard cost cuts, especially on high-rent, highly leveraged operations.
The new rule removes prevented-plant buy-up coverage, prompting strong objections from farm groups concerned about added risk exposure.
Tight Credit, Strong Yields Define Early December Agriculture
Lawmakers and experts react to the Administration’s long-awaited announcement of “bridge” aid to stabilize farms and offset 2025 losses until expanded safety-net programs begin in 2026.

LATEST STORIES BY THIS AUTHOR:

Lewis Williamson with HTS Commodities breaks down the outlook on grain storage and domestic supply chain strength as producers weigh planting decisions with forthcoming federal aid.
Experts say flooding the zone with more money could have unintented consequences without opening new markets for planted crops and inputs under significant pressure.
Julie Callahan was nominated earlier this summer by President Donald Trump, and U.S. Trade Representative Jamieson Greer told lawmakers she is ready to hit the ground running.
Ag Secretary Brooke Rollins signed six MAHA waivers for SNAP in Hawaii, Missouri, North Dakota, South Carolina, Virginia and Tennessee.