Cost of Production
Production costs are the number one concern for farmers. This according to Matt Erickson, agriculture economist and policy advisor with Farm Credit Services of America.
Erickson… “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 gonna have concerns because prices are higher.”
Volatility also continues to be a concern for producers, however, Erickson says that there are still opportunities even with volatility.
Erickson… “Farmers are really concerned about the downside volatility that could come within the situation into 2023. You know, when we look at volatility, we've gotta think and re 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, risk 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, 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.”
That’s Matt Erickson with Farm Credit Services of America.