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Livestock sector uncertainty and volatility could carry into 2021

The Chief Credit Officer for Farm Credit Services of America expects some themes from this year to carry into 2021, especially for the livestock sector.

“2020 was a year that we faced a lot of uncertainty and a lot of volatility. As we look into 2021 I think those same two terms probably apply.”

However, Tim Koch tells Brownfield he believes processors have taken the steps necessary to avoid shutdowns of the capacity experienced in 2020.

“I’m optimistic that we won’t see a repeat, but it doesn’t mean that we won’t see localized or isolated challenges on the processing side.”

He says producers should continue to talk to processors, figure out their marketing strategies and hedge their production at profitable levels to take price risk off the table.  

Brownfield’s Meghan Grebner interviewed Koch during Trade Talk as part of the virtual National Association of Farm Broadcasting Convention. Click here to view the full interview.