Farmer says volatility in sector is becoming increasingly hard to manage

A Kansas farmer says it’s becoming more difficult to manage risk in 2023.

Paul Penner tells Brownfield he’s concerned about the impact that drought in the Eastern Corn Belt is having on commodity markets. “If suddenly they get some rains between now and July 15, that maybe problematic and the price may not go up as much as I anticipated.”

He says it’s hard to determine when to sell. “Right now, our corn looks super great.  I’m hoping we can capitalize on a price rise.”

And, he says, there’s uncertainty surrounding the Black Sea Grain Initiative and a possible extension. “We never know who our competitors will be and whether the price will be up or down.”

It’s unclear if Russia will continue to extend the agreement in July due to the country’s concerns about grain and fertilizer exports.