The old saying is that ?what goes up, must come down.? This is something that we have been keeping in the back of our minds ever since we started to see farm prices climb higher just a few years ago. We knew it probably wouldn?t last. Eventually, there would have to be some give. It may have been a blessing that we have been able to hold on to these prices for so long, but the truth is they are slowly slipping lower.
Balance sheets are starting to show that between a good crop in Brazil, and the potential that a La Ni?a reversal could mean the return of better production in the U.S., we could be looking at an increase in our grain stocks on the global scale.
Right now, the Ag Outlook Forum is being held, and USDA just released some numbers that show farm incomes in 2023 will likely be lower. Carrie Litowski is a Senior Economist with the USDA Economic Research Service. She talks about the numbers USDA has released.
She adds that profits will likely fall because of these main factors and a few others.
Matt Bennett of AgMarket.Net joined us on today?s Opening Market Podcast and said that this situation has been on the horizon for a while now. If farmers are caught off guard, they simply weren?t paying attention.
Litowski says that even though incomes are expected to be lower, it?s not time to hit a panic button.
