Twenty-eight farmers from the Hardin and LaRue County area met with Farm Market Analyst Jason Moss to review and discuss the new farm environment and how producers will need to compete in the 21st century.
Moss – part of the nationally known Brock Report Team – delivered the message that the U.S. farm economy has undergone profound changes over the last few months with rising commodity prices, roller coaster economics and adjustments in hedging and margins, bringing a whole new set of risks to farming.
The Brock Report forecasts that grain and livestock prices will be higher and input costs significantly less in the coming year. However, during the meeting, Moss also stressed the expectation of flattening farmland values and higher cash rents.
“If there’s any lesson to be learned from 2008, it’s the value of knowing how to market your crop and purchase the inputs. Making good management and marketing decisions is even more important for today’s producer,” Moss said. He backed up his statements with historical charts and data on commodities and future expectations of supply and demand in many commodity and export areas.
Farm Credit Services of Mid-America and Whayne Supply worked together to bring the farm conference to Lexington and other portions of the state, including Elizabethtown, Hopkinsville and Bowling Green.
“The idea was to inform farmers of issues that will impact their 2009 planning,” said Mike Buckman, financial services officer with Farm Credit Services in Elizabethtown. “While agriculture did not go untouched during the recent financial crisis, it did come out of 2008 in better shape than many other industries. That’s the good news. However, the most important thing for producers to remember is as they plan for 2009, to make comparisons to 2007 and 2006, not the unrealistically high prices of 2008.”