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Risk management critical for farmers especially at current prices

An ag economist says current price levels are creating tight margins for producers.

“It’s an inhibitor to buy farm machinery. It’s probably an inhibitor in the land market and to go out and spend lots more.”

Dan O’Brien with Kansas State University says risk management should be a top priority for farmers with ongoing uncertainty in the ag economy. “I think if anything, we’ll be judicious and efficient with crop inputs, and we’ll also see the land and machinery market step back until farmers have more money in their markets.”

But, O’Brien says, that may not be the case for every grower. “If we get tremendous yields, and in some areas they will, that will offset low prices so then it becomes a revenue question.”

He says he expects record corn yields in several states this year despite some late season challenges in parts of the Corn Belt.