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.
Rising cow numbers and higher yields are boosting milk supplies, which may keep pressure on prices and farm margins into the fall.
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As input costs continue to rise, diesel prices have held steady in recent weeks, according to energy analysts at GasBuddy.
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The USDA is moving to close the farm trade gap through promotion, missions, and stronger export financing.
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Midwest corn and soy producers are monitoring for disease and lower yields due to the ongoing drought over the last 30 days.
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Fewer placements and historically low marketings point to tighter cattle supplies ahead, with Nebraska and Kansas gaining ground as Texas feedlots face supply pressure and the threat of New World Screwworm.
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Industry-wide participation in SHIP enhances biosecurity and fosters global trust in U.S. pork, says swine health expert, Dr. Christine Mainquist-Whigham.
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