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Managing the new era of corn and soybean prices

An agricultural economist says growers will need to keep two words in mind as they prepare for the continued volatility in the commodity prices.

University of Illinois’ Scott Irwin says those words are “be ready”.  He tells Brownfield as producers prepare for a new era of corn and soybean prices – they need to ask themselves very fundamental questions about commodity markets.  “Have we been going through a period where we’re scraping along the bottom,” he asks.  “Or is the new era that we’ve experienced from roughly 2007 to 2013 really over?”

He says this recent upswing could be temporary.  “It could quickly fade and we could proceed grinding lower and lower and lower,” he says.

Irwin says producers should take advantage of marketing opportunities when they are presented.  He says farmers need to establish a plan and figure out pricing targets for their farm.  “Put in place the steps and the discipline to really be able to pull the trigger if we get those opportunities,” he says.

Irwin says most importantly, farmers need to be ready.

AUDIO: University of Illinois Scott Irwin