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Thinning margins complicate grain marketing

Thinning margins are complicating marketing plans as farmers prepare for the upcoming growing season. 

Jeff Peterson with Heartland Farm Partners says growers are nervous about rising production costs.

“And (wondering) ‘do we sell or not sell here’ because they see their margins getting really tight.”

He cautions growers waiting on a spring rally.

“Our thought is the strength that we’re getting in the market now is a good opportunity to be working on cleaning up some of those old crop sales (and) work on getting a good book of new crop sales on.”

And Peterson tells Brownfield farmers should have a Plan B.

“If (the weather) turns hot and dry, we know that prices are going to go a lot higher. So we are going to have to have a way to be able to defend those sales if we physically go ahead and get those made now.”

Brownfield interviewed Peterson during the Iowa Ag Expo in Des Moines Tuesday.