When it comes to volatility in the markets like what’s happened in recent weeks, many farmers might react with excitement that’s followed by a sense of uncertainty. It can be exciting to see prices that haven’t been seen in quite some time. But it can also bring many questions about what’s yet to come in the market, and the decisions the farmer will need to make.

Farmers often ask what the best approach is to a volatile, uncertain market like what we’re seeing so far in 2021. But there’s no one single answer to that question, and here’s why.

No operation is the same

Each farm operation is a unique entity with many different variables at play – different histories, soil types, financial situation, breakevens, loan responsibilities, on-farm storage availability – and so on. The unique mix of factors that come together to make the farm operation what it is must also help inform the farm’s marketing plans and decision-making.

This includes how the farm’s leaders go about decision-making within a volatile market. Grain marketing is not – and can never be – one-size-fits-all. The marketing plan that’s right for your neighbor down the road – or your peer group member across the Corn Belt – is probably not the best one for your operation.

Three thoughts

Here are three ideas to help as you work toward marketing plans and decisions that are best for your operation.

Many farmers say working with a market advisor is helpful and brings more peace of mind. Our market advisors work with farmers to create marketing plans and strategies that align with the operation’s goals. You can learn more about our marketing solutions or get a free trial of our market information service at www.waterstreetconsulting.com.

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