In 2023 we saw a little more of a bumpy ride than we have had in the few years prior. By no means are we in any kind of trouble, but profit margins were a little tighter. That means it is going to take even more careful planning to grow a crop in conditions that may start out already to the dry side in Iowa.
So, what does this mean for 2024? Inputs seem to be a little higher and prices are still in a volatile state of flux. Of course, the markets are going to be watching these things very closely and will likely react with large swings once again. But what factors are they going to be watching in the beginning?
Dave Widmar is an Ag Economist with Agricultural Economic Insights in Indiana, and he says that the two things he is most interested in right now is acreage allocation and farm debt. Every year there seems to be a shift in acres planted to which crops. 2024 will be no exception.
Farm debt is always a wild card because the stability of those debts is determined by the markets and the markets will be altered by farmers’ planting decisions.
Even though debt can be a wild card, Widmar says that lender confidence remains high as agriculture still seems to be a safe bet for them despite narrowing profit margins.
You can learn more about Widmar’s reactions for 2024 at aei.ag.
