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| Grain farmers in the midwest (focusing on corn and soybeans) should routinely stress test their operational budgets for short term (8-12 month) drops in the commodity market of 30-40%. For 2024, crop budgets should be looking at cash corn prices in the $3.70-$4 and soybeans around $10.50. The fact that corn has been 8 bucks and soybeans 16 bucks in recent memory is not relevant to the current prices. Time to move on from the higher prices of yesterday and prepare for lower prices of today.
Creating a sound budget and sticking to it, along with a disciplined marketing plan is essential every year regardless of price level. Emotionally it just seems to matter more when prices have fallen.
I would guess that most farmer operations of any scale, 2000+ acres (although that is getting to be on the smaller side of the scale) will find that the real operational savings won't come from input savings but rather from overhead and lifestyle spending. | |
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Seems many on here want to dust off the 70"s - 80's playbook
