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Have an old crop exit strategy

An extension ag economist says commodity prices aren’t expected to get much better before harvest and farmers should have an exit strategy for their old crop.

Chad Hart with Iowa State University says some farmers will try to store grain and wait for higher prices next spring.

“I talked to about 50 or 60 farmers this week and was amazed how many of them still have some crop in storage on the farm right now. I was like, guys, you just watched prices drop by $1 on the corn side and about $2 on the soybean side in the last year. When will we make that move?”

He says if commodity prices don’t get a boost by spring, farmers using storage will need a Plan B.

“When do you pull the trigger and bail out, saying ok it might not be a profit, but I’m going to limit losses where the price is at?”

Hart says a grain farmer’s profitability for 2024 depends on how well they marketed their grain ahead of low prices and on average, Iowa farmers were too hesitant to forward contract.

And Hart says good commodity marketing becomes even more important next year.