Farm Futures logo

3 keys to remember during market volatility

Keep these concepts in mind to help refocus and carry on during times with wild markets.

Darren Frye, CEO

June 6, 2022

3 Min Read
Stockmarket price after covid-19 crisis Business Trends Graphs and charts

The grain markets have certainly been on a dizzying ride that was fueled even further this spring. These price levels can lead to feelings of flying at high altitude – not to mention uncertainty around where things are headed next.

While no one can know for sure what the future holds, as farm leaders, it can be good to refocus ourselves on a few central principles when dealing with such great heights and volatility in the grain markets.

Doing this can help from fixating on factors we cannot control – such as the weather or what’s happening geopolitically in other countries – and bring our attention back to what we can control within our own operations – our decision-making.

Keep in mind

While soaring around in this unprecedented 2022 grain market, here are three concepts to help ground yourself and focus on solid decision-making.

  1. Remember that volatility can mean opportunity. Where there’s market volatility, there’s opportunity. The key is in knowing your farm’s numbers, understanding what it looks like for your farm to be successful, and then working on a marketing plan that’s best for your operation. That plan will look different for each farm operation because every operation is working with different factors and different breakevens. You need to know your costs or have very accurate estimates of them so you can get the best possible marketing plan in place. That way, it’s mainly a matter of watching for the opportunity within the volatility.

  2. Remember your end goal. One of the toughest things in a volatile market is that the emotions of any market swing seem to multiply. It’s hard to watch as the market moves in roller-coaster fashion at these levels – and it can also make decision-making or pulling the trigger that much harder. The key is remembering what your “end goal” is – your farm’s bottom line. The bottom line is that you want your farm to achieve financial success – that’s why you create a marketing plan and then execute on it. Remembering this can help when weathering a market like the current one that seems to swing on any little thing that happens – or doesn’t happen.

  3. Remember you don’t have to go it alone. When the market is so volatile and there’s a great deal at stake, it’s a good time to find a partner for your marketing plans and decisions. There’s a reason that good pilots have a co-pilot there to help them make the best decisions, especially in tough situations. The pilot (the farm leader) remains in control of the final decision – but it can be a major help and source of peace of mind to have someone else, like a market advisor, as your co-pilot to bounce ideas off of and to help watch for opportunities in a market like this.

A wild ride

This year, have you felt anxious about the wild ride the grain markets are on? Have you felt uncertain about how to best capture opportunity?

Many farmers have found that working with our market advisors has helped ease their minds. The advisors help farmer clients with planning and execution around marketing decisions and help keep them up to speed on the current rapidly-changing grain market situation – and how it impacts their operation.

Get a free week-long trial of our marketing information service (MarketView Basic). Your free trial includes regular audio and video updates, technical analysis, recommendations and more. Learn more about our market advisor programs and offerings at

The opinions of the author are not necessarily those of Farm Futures or Farm Progress. 

About the Author(s)

Darren Frye

CEO, Water Street Solutions

Darren Frye grew up on an innovative, integrated Illinois farm. He began trading commodities in 1982 and started his first business in 1987, specializing in fertilizer distribution and crop consulting. In 1994 he started a consulting business, Water Street Solutions to help Midwest farmers become more successful through financial analysis, crop insurance, marketing consulting and legacy planning. The mission of Finance First is to get you to look at spreadsheets and see opportunity, to see your business for what it can be, and to help you build your agricultural legacy.

Visit Water Street Solutions

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like