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Economist expects a positive spring for ag retailers

An ag economist is predicting a strong spring for ag retailers.  Ken Zuckerberg with CoBank says farmers are in a strong financial position and are willing and able to spend money on inputs.  “We’ve had a very strong grain rally since last August,” he says.  “That, plus, continued support from the government put many farmers into the black for 2020.”

He tells Brownfield demand for inputs is also very strong this spring.  “Based on the global supply/demand imbalance, and the need for more acres to be planted this year, the USDA is calling for at least 10 million more acres of corn, soybeans, and wheat in 2021,” he says.  “And you need inputs to grow those crops.”

Zuckerberg says while cooperatives and ag retailers are positioned for a profitable spring, farmers could see added pressure to their bottom line.

He says some farmers were able to lock in fertilizer prices for 2021, but for those who couldn’t or didn’t.  “They should look very thoughtfully at prescriptions,” he says.  “What you need to grow a certain crop and what you don’t need.  So being thoughtful about input purchases, the timing of such and the mix of such is important.”

Zuckerberg says inventory levels for fertilizer and crop protection products are expected to be sufficient for farmers’ needs this spring, but if any logistical bottlenecks did pop up, it could potentially create shortages and send prices higher.

A link to the full report can be found HERE.

AUDIO: Ken Zuckerberg, CoBank