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Agricultural uncertainty hits young producers hardest

A senior lecturer with the College of ACES at the University of Illinois says agriculture is facing more uncertainty now than at any other time in his 25-year career.

Paul Stoddard tells Brownfield, “Risk management is more important than ever.” He says, “The farm that sells in the top third of the price range and pays average or below for the input costs probably does really well. And if you’re in the bottom third of the price range and the top third of the range for the cost, you’re probably going to have a real tough year.”

He says he’s especially concerned about young and beginning farmers.

“Farmers about my age have been paying things down, accumulating equity, accumulating working capital.”  He says, “They are better positioned to weather these types of financial storms as compared to the person who’s just started farming and has to borrow a much higher percentage.”

Stoddard says while down cycles typically favor larger operations, he says highly managed farms of any size with diverse income streams can also thrive.

“Success is the sum of a lot of small factors,” he says.

Stoddard is set to retire after instructing over 12,000 students in his more than 25 years of service to the university.  His final lecture will be live streamed and open to the public and alumni at 5pm on Tuesday, April 21^st.

AUDIO: Paul Stoddard – University of Illinois