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
Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026. Dr. Derrell Peel, with Oklahoma State University, joined us to break down cattle-on-feed numbers and provide his broader market outlook.
USDA Rural Development Director for Kentucky, Travis Burton, joined us to discuss the Princeton facility (formerly Porter Road Meats), now backed by the USDA, and its role in expanding domestic meat processing capacity.
Farm CPA Paul Neiffer joined us to break down the recent Fifth Circuit Court decision overturning a prior Tax Court decision on self-employment tax for limited partners, the ruling’s impact on farmers, and potential next steps in Congress.
Americans for Prosperity Arkansas Director Ryan Norris talks energy infrastructure, regulatory reform, and the role of critical minerals in supporting rural America.
Congressman Adrian Smith of Nebraska joined us with the latest on efforts to secure year-round E15 sales.
Nearly everyone in the South Texas ag community appears extremely worried about the potential of a New World screwworm epidemic, according to a local veterinarian. RFD NEWS Correspondent Frank McCaffrey reports.

LATEST STORIES BY THIS AUTHOR:

CLAAS Senior Vice President for the Americas Region Eric Raby joined us to preview the new docuseries “CLAAS: Made for More,” premiering tonight at 9 PM ET only on RFD-TV.
Dairy farmer and Discover Ag co-host Tara Vander Dussen joined us to discuss the Whole Milk for Healthy Kids Act, her experience at the signing, and what’s next for her family and farm.
The Farm Bureau is making an urgent call to Congress for more farm support. Colton Lacina with Farmers National Company joined us to discuss farmland values and how market dynamics for the year ahead reflect stabilization rather than collapse.
Analysts say a Supreme Court decision on tariffs could reshape protein markets, strain U.S.-China trade, and force farmers to rethink global demand strategies.
Wayne Cockrell with the Texas and Southwestern Cattle Raisers Association joined us to discuss preparedness, producer awareness, and the industry’s response to New World screwworm concerns.
President Donald Trump speaks at the World Economic Forum in Davos, addressing SNAP spending, tariff threats against Europe, market reactions, and the upcoming USMCA review.