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Reverse-plan during times of low commodity prices

A financial services representative for AgStar says reverse-planning can be an effective strategy during times of low commodity prices.

Glenn Wachtler tells Brownfield farmers typically forward-plan.

“Which starts at the beginning and works towards the end.  With reverse-planning, we’re looking at our end-goal in mind.”

He says the ultimate goal of every producer should be to make a profit.

“We outline the profit that we expect and then plan backwards right to the beginning.  Right down to the acres you want to plant and how much you expect to get with the commodity prices that we have.  Which are not the highest, as you know.”

Wachtler says some experts forecast commodity prices will remain low through 2020, and he advises farmers to plan accordingly.