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CoBank economist discusses market volatility with NASDA members

An ag economist says volatility in the commodity markets could be one of the biggest concerns for the ag industry in 2024.

Tanner Ehmke with CoBank says farmers and ranchers have experienced record net farm income the last few years. “That’s about to change with commodity prices coming down and costs coming up.”

But, Ehmke says some inputs have decreased. “Fertilizer prices are way down, which is the silver lining here. As crop prices go down, fertilizer tends to follow.”

He says the recent volatility could become a long-term issue. “Call it two or three years where we will have elevated costs of production and commodity prices haven’t responded.”

Ehmke spoke during the recent NASDA (National Association of State Departments of Agriculture) annual meeting in Cheyenne, Wyoming.