Managing Fertilizer Risk
Tim Hammerich
News Reporter
As uncertainty continues in fertilizer markets, many farmers are left wondering how to respond. While prices and supply remain unpredictable, decisions still have to be made. Josh Linville with StoneX Group says in times like this, clear thinking and communication are key to managing risk and securing supply.
Linville… “ The biggest thing, and again this is just to those farmers who are just scratching the head and like—I don't know what to do. I don't know how to proceed with it. And the biggest thing I always talk about is farm marketing. Listen, we can be angry, sad, upset, nervous, all these negative emotions. The market is causing that to happen. We still have got to have a clear head when it comes to farm marketing, right? Clear, rational decisions. Hopefully we can find some opportunity with profitable situations out there we can jump on. The other side is, I know it's easy, we want to bury our head in the sand—again, those negative emotions. But if you're going to need stuff this spring, have the conversation with your retailer. I'm not saying you have to lock it in. I'm not saying you have to hand them a check. I'm not saying you have to price it, but have a conversation. How are you seeing? Here's what I'm wanting to do. I'm wanting to go 50-50 rotation. Again, here's what I'm thinking I need for fertilizer. That retailer may sit there and say, dude, I know that's what you're going to do. We've been working together for years. I got you covered. The retailer may say, listen, I didn't buy it because I don't know what to do and I can't take the risk. I need to have a really good idea of what you're doing so I can make plans to have this stuff in place. When you're ready to step in and get me the money to pay for the product. The more conversations we can have with our supplier, the better suited we are gonna be to get through the spring with limited hiccups.”
Linville is an advocate for objective, data-driven decision making.
