It seems like something we have talked about a lot. 2019 was a year we want to forget but cannot afford to. Many factors beyond our control had huge effects on how farms were operated. Some of these challenges were carried over from 2018, and some were brand new in 2019. Many of them left farmers and lenders scratching their heads.
Rod Hebrink is President and CEO of Compeer Financial. He talked about how we have had to put up with weather conditions that were less than ideal in 2018 and 2019.
As the late planting season dragged on, we were hopeful that the markets would react accordingly and give us some good numbers to market on. That didn?t materialize as farmers and lenders hoped. We only had about a week of appropriate price reaction. If you missed the boat, you were out of luck.
Also, the crop reports were less than stellar to support the markets. Many producers were left wondering where the USDA was getting their numbers when they were the ones looking at stressed crops all year. Hebrink says it is going to take until all the numbers are tallied in January before we have an idea as to who was right.
Hebrink says this prolonged downturn in the grain markets over the past couple of years, has minimized some of the damage to farmers. They have already been gradually shedding expenses over the years. This wasn?t just an immediate implosion. Minimizing your risks and expenses minimizes your opportunities for heavy losses.
Hebrink says farmers should brace for more of the same in 2020. He doesn?t see a major swing back upwards, but he also doesn?t see any more major drops either.
Hebrink encourages producers to be talking with a reliable financial advisor and Ag lender.
