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Be careful when adjusting grain marketing plan

An ag economist is cautioning producers from making large changes to their marketing plans based on individual pieces of information.

Ag Economic Insights’ co-founder David Widmar tells Brownfield farmers need to think of the big picture and make decisions on as much information as possible.

“That one piece of information, if you put that into your budgets and your projections and that changes it, that can be valuable,” he said. “But, just don’t take that one piece of information – be it fertilizer prices, or the latest WASDE report – don’t let that singularly impact your decision making.”

Widmar said a well thought out marketing plan will become more important as ag inputs rise.

“It’s really important, especially in a year like 2022 where we’re going to have this rapid increase in the cost structure,” he said. “But also, all the uncertainty around demand, as well as thinking about where the price is going to be.”

Widmar said 2022 is still setting up to be a favorable year for farmers with strong grain prices covering higher input costs.