Like each different a part of the economic system, the agricultural sector will proceed to navigate working in post-COVID world in 2022.
Many facets of agriculture are fairly optimistic proper now. The Corn Belt continues to be the best land on the planet, and as growing nations proceed to develop, the demand for ag merchandise will rise together with it.
Additionally, know-how, info and genetic enhancements proceed to push crop manufacturing to unprecedented ranges. However, enter prices, notably these of herbicides and vitamins are shortly rising on account of delivery delays and provide and demand considerations.
Land values and money hire costs are increased than they’ve ever been, which is nice information for some and never so good for others. Many established farmers have handled these conditions earlier than and could also be ready to journey the worth waves.
Younger farmers nonetheless, may have some help as they adapt to the brand new farming local weather. As we look forward to 2022 (and the years to come back) I want to take this time to level out some useful instruments that agriculture economics specialists at Purdue have developed to assist farmers navigate these occasions and assist them higher handle dangers.
For updated evaluation and programming on economics, I extremely suggest monitoring Purdue’s Center for Commercial Agriculture web site: https://ag.purdue.edu/commercialag/home. Here you can see well timed articles and webinars for the upcoming 12 months, together with info on the Farm Bill, international commerce, money hire and land worth traits, and upcoming applications happening across the state.
As you navigate native and state commodity markets, you possibly can entry their “Crop Basis Tool,” which can be utilized to look at weekly close by and deferred foundation costs for corn and soybeans. Daily money value information from particular person grain elevators and processors are averaged inside every crop reporting district to create a regional common money value sequence.
The regional common money value information is used to compute weekly foundation (money value minus futures value) for corn and soybeans.
Of course, advertising and marketing is simply one of many many dangers farmers will face within the coming years, thus a significant portion of the web site is dedicated to managing farm threat. The web site, which is a part of a partnership with the Indiana Soybean Alliance and Indiana Corn Marketing Council presents many precious assets, and can assist you consider your present scenario and tailor assets to assist handle and higher put together you for potential dangers.
Much of our focus is so typically on manufacturing, however with margins squeezed as tight as they’re, managing these potential dangers could possibly be the important thing in any given operation between success and failure.
Andrew Westfall is director of Purdue Extension White County (Ind.).