Commodity Fields: Weathering the Downturn

Share this

Survival Depends Upon Precision Forecasting; “Approximate Accuracy” No Longer Enough

As the 2018 season ends, growers, agronomists, and financial advisors start to analyze this year’s results in order to prepare budgets and plans for next season. Determining how much product will be needed next year is a crucial determination for farm operations, especially if you’re intending to use prepayments to cut costs and create tax savings before December 31.

By all industry indicators –weather conditions, compressed margins due to higher input costs, and low commodity prices – it’s more important than ever to step up the level of precision in your farming.

“There is literally no room for error in today’s commodity market,” says Alan Grafton, principal with K·Coe Isom’s AgKnowledge team. “In the last year, many farmers have had the opportunity to market profitably, but some did not pull the trigger because they were uncertain about their true cost of production. We know that if we create a plan and a budget with an exact cost of production analysis, growers stand a better chance to market effectively, control costs, and weather this downturn in the commodity cycle.”

With the increased focus on the cost-side of a farming operation, honing in on areas to keep costs down becomes critical for commodity fields. Accurate forecasts and budgets, and the use of field planning tools for precise data, will help with determinations.

“Farmers will have to use every tool available to them in the next few years,” adds Grafton.

For more, read the full published article in PrecisionAg.

 K·Coe Isom helps commodity producers connect sound financial decisions with field management. Contact our AgKnowledge experts for more information.

Your Land. Your Terms. Your Profits.

Perception vs. Reality of Diversifying Land for Revenue Source Your land is the foundation on which you – and your family – have built your lega...

8 Ways to Prep your Farm Business for 2019

Tackle these worthwhile tasks now for a more productive year ahead The end of the year is a smart time to prepare your ag business for the coming ye...

Major Midwest Expansion Ahead for K·Coe Isom

Indiana Communities and Food & Ag Businesses to Benefit K·Coe Isom is expanding deeper into the Midwest with its announcement of a new office l...


Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*