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ISU specialist: Take advantage of seasonal rally

johnson-steve-isu 1-16 editIowa State University farm management specialist Steve Johnson says farmers need to take advantage of this seasonal spring rally in the commodity markets.

“I don’t think this is a rally that you do nothing about,” Johnson says. “You finish old-crop sales and you aggressively make new-crop sales to generate cash flow for next fall and winter.”

Johnson says many farmers will fail to take advantage of seasonal rallies. That’s unfortunate, he says, considering the financial pressures  many of them are facing.

“I think the ag lenders are going to be less sympathetic this fall and winter to those who did nothing and speculated that the future prices would be even higher as we got into late summer,” he says.

Farmers should be thinking six months ahead, Johnson says, and ask themselves, “How much cash will I need this fall and winter?”

“Let’s take advantage of this market and don’t regret what you’ve already sold. Focus on staying in farming in 2017.”

AUDIO: Steve Johnson

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