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Ag Outlook: Volatile Prices and Higher Interest Rates

Ag Outlook: Volatile Prices and Higher Interest Rates

Five things you can do now to prepare for 2010.

Here's a six things I took away from the recent Ag Outlook Conference held in Sioux Falls, S.D.

  1. Look for grain prices to be volatile. Nobody really knows for sure what direction the grain market is heading.
  2. Lock in input prices. You probably won't be comfortable forward selling grain unless know your current costs. Input prices will be volatile, too.
  3. Do more to reduce commercial N needs. Improve soil health, plant legumes, grow cover crops, produce more manure, or lock in a multi-year contract for manure.
  4. Prepare for higher interest rates. The federal deficit and the low value of the dollar are putting pressure on interest rates to move higher.
  5. Try to negotiate multi-year cash rents now. Land values and cash rents will likely continue to rise.
  6. Expect the unexpected. Weather disasters, wars, terrorist attacks and new technology can change affect the economy suddenly.

Speakers included Robert Utterback, Utterback Marketing Services; Al Ambrose, Cenex Harvest States and Don Reynolds, 21st Century Forecasting.

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