Johnston Predicts

Idaho farmers should prepare to tighten their belts in 2016 as the downturn in agricultural markets that started in 2015 will continue into the future. Marketing advisor Clark Johnston says producers need to be prepared in two vital areas to make the 2016 crops profitable.

 

“We need to have good accurate records. We need to know where the break even levels are on this so we are not just continuing to chase the market. Next, when we see a bump in the market, whether it's basis or futures or whatever, when we see the market give us $.20 or $.30 today that it didn't give us last week, jump on that.”

 

Clark says if 2015 taught farmers anything, it's to be prepared to sell on any given day. He points to grain prices in late 2015 as a good example.

 

“This year, what the market gives us, it is more than willing to take away. 3 to 4 weeks ago we went up $.28 in a week and the following week we went down $.32. The thing with marketing is that you have to be unemotional about it. This cannot be your baby. You have to unemotional and when it hits this level, I'm selling no matter what I'm going to sell.”

 

Johnston says that with the markets the way they are today and where they appear to be headed, farmers should be happy to make any profit that allows them to at least maintain their operations and live to play the game another year.

 

“The markets, the way they are now, and next year and possibly two years down the road, we are just couldn't have to try and sell at a profit. If we can get that done and live to play the game another year.” A practice that is not all that uncommon for farmers and ranchers.