News

Farm profitability could be starting to rebound, analyst says

A grains and oilseeds analyst says farm profitability could start to claw its way back.

Marc Rosenbohm with Terrain says how producers managed risk before the Middle East conflict began is making a major difference.

He says some growers are better positioned. “In a best case, somebody who bought a significant portion of their inputs ahead like fertilizer, probably some fuel as well, chemicals and seed, their margin looks a little bit better now.”

He tells Brownfield even if they weren’t as proactive, there could be opportunities to mitigate risks. “For somebody who did very little ahead or something balanced ahead, that steady margin that we talked about despite the volatility is what I estimate to be the current situation.”

But, Rosenbohm says, some farmers who waited to purchase supplies and sold grain too early are likely facing very tight margins.