News

Managing risk during a weather market

An Ohio State ag economist says some farmers should participate in risk management even if they think prices will rise. 

Carl Zulauf tells Brownfield farmers need to know what their risk exposure is, especially in a weather market when grain prices can swing quickly. 

“You need to really be honest with yourself about how much risk to the downside you can expose yourself to and be comfortable,” he said. “Because the one common factor that I find among farmers is they want to farm next year.”

He said off-farm income allows growers to have greater market flexibility… 

“And the more that they contribute to your household expenditures, the more risk you can take on the farming side,” he said.

Zulauf said producers will likely be exposed to the market with little government support expected this year.