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Plan for a recession

Farmers are being warned to plan for a recession.

Compeer Financial chief risk officer Bill Moore says he’s concerned about the economic environment and how commercial agriculture might be affected.

“The more traditional companies, they are levered differently, they are operated differently. And if we do hit a recession in the later half of this year (and) see cutbacks from those that are connected directly to the consumer, that could have a flow down the supply chain all the way back to the grower.”

If there is a recession, he tells Brownfield farmers should consider risk and reward.

“You want to manage the risk and understand what the reward is on the other side. And when the reward is bigger than the risk, that’s when you pull the trigger.”

He says although the likelihood has lessened, he still expects a recession to occur.

Brownfield interviewed Moore Wednesday at Farmfest near Redwood Falls, Minnesota.