IARN — Looking at the market screen during the writing of this article, I am seeing a lot of red in the grain markets. Lower prices are nothing new in the marketplace. We all know that what goes up usually comes down. However, in the current economic climate, the trip down is a lot further and could hurt a whole lot worse than in years gone by. Even though we are not seeing markets as high as they have been in months past, the prices for our grains are still very good.
So, why is there so much worry?
The question is a valid one. Markets are higher than in year’s past. Farmers have made some decent profits in the past couple of growing seasons. Producers who have gotten good advice or know the game, have been able to maximize their incomes. But, now we are starting to have to pay the piper.
This is where the concern gets more frightening. If we were to see a market collapse to prices we saw before this increase, a lot of farms would likely go under. Family operations that have been going for generations may have to fold. That adds to economic and emotional stresses. We just came through suicide prevention month earlier, and the talk of mental health and farming has been on the rise. Face it, there is a lot at risk.
As the title suggests, the Ag economy is walking a steep ledge in an Iowa wind. Volatility is both giving us fragile support and pushing down on us at the same time. Yesterday, I talked with Jacob Burks of AgMarket.Net about the situation farmers are seeing right now as it pertains to volatility. First, he highlighted the export angst we are facing and how it is affecting the prices farmers are getting paid at the elevators.
For more on this story visit the Iowa Agribusiness Radio Network.
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