Economist says farmers should evaluate U.S. economy before finalizing risk management
An ag economist says farmers should consider the broader U.S. economy as they formulate their risk management plans for 2023.
Brian Briggeman is with K-State University. “You can you look at this macroeconomy and what I would paint a picture for is a lot of uncertainty and a lot of challenges. You have to stay with those fundamentals. Don’t think there is something else out there to get me through it. “It’s really about getting back to the basics.”
He tells Brownfield inflation has caused tighter margins for producers. “Understand what your budgeting is. Be able to control those expenses. Be as efficient as you possibly can.”
Briggeman says producers should be conservative, but flexible. “How do I make sure I have adequate liquidity, working capital levels that are available to me so that when another risk comes at me, I have that ability to absorb it,” he says. “Don’t forget about those opportunities.”
Brownfield interviewed Briggeman at the 2022 KSU Risk and Profit Conference.