2023 Ag Outlook

Matt Erickson, agricultural policy adviser with Farm Credit Services of America talks about what farmers are most concerned with heading into 2023.

"Shifting gears from 2022. And pivoting to 2023. I think the number one concern that farmers have, you know, in the media, if you're going to talk to them right now, it'd be production costs. And you know, if it's higher fertilizer prices, chemical prices, seed prices, anything that it takes to put that input that needs to be purchased to grow that crop, farmers are going to have concerns because prices are higher. And that also includes cash, cash, rents, as well. So all those different things, all those different production costs have increased for producers."

Erickson says that along with volatility comes some upside opportunities.

"You know, when we look at volatility, we've got to think and remember that volatility is a two way street. You know, one a lot of times, you know, what gets impacted by margins quite a bit and talked about a lot is the downside, you know, risks that volatility brings. But we also have to remember that it's a two way street, and that there's upside opportunity within volatility that producers have the opportunity to take advantage of. And so when I talk with customers, and basically talk with farmers across the country in general, you know, I always often remind them, the better that we plan, the better that we focus on our cost and revenue structure, then we can take advantage of those upside opportunities within the volatile environment that 2023 could bring."

Matt Erickson, agriculture, economic and policy adviser with Farm Credit Services of America.