Aired: January 2016 With the low commodity prices of 2015 likely to continue in 2016, many advisors recommend cutting costs. Meanwhile, growers are afraid that doing so may lead to minimizing the bushels they have to sell. In these times of tighter margins, it’s critical to look closely at on-farm finances and identify the available options to make a greater profit, such as with futures, options and overall grain marketing. “Managing risk will be one of the bigger parts of farmers’ operations in the next couple of years,” says Matt Bennett, independent grain marketing consultant. “It’s times like this [...]

Aired: January 2016 With the low commodity prices of 2015 likely to continue in 2016, many advisors recommend cutting costs. Meanwhile, growers are afraid that doing so may lead to minimizing the bushels they have to sell. In these times of tighter margins, it’s critical to look closely at on-farm finances and identify the available options to make a greater profit, such as with futures, options and overall grain marketing. “Managing risk will be one of the bigger parts of farmers’ operations in the next couple of years,” says Matt Bennett, independent grain marketing consultant. “It’s times like this that [...]

According to the USDA Economic Research Service, U.S. net farm income is set to decline by 36 percent in 2015, and commodity prices are not expected to improve in the foreseeable future. “Farmers are going to see more financial stress in the next six months, but they have many resources available to stay ahead of the curve on finances,” says Farm Management Specialist Steven Johnson, Ph.D., with Iowa State University Extension and Outreach. In this episode of Profitability Matters, Johnson shares his insight on 2015 and 2016 commodity markets and steps farmers can take to ensure a financially strong 2016. [...]