What Could The Farm Economy Look Like Into Early 2021?

What long-term impact could we see on the farm economy from the struggles of 2020? Tim Andriessen of CME Group said volatility in the commodity markets  this year may continue in some areas next year.

“A positioning of the global grain markets that we don’t have the excessive supplies that  we thought we do. Which means that volatility going forward is going to be a lot easier to come by.”

Tim Koch of Farm Credit said between rise in some commodity prices and various government program payments, producers have opportunity to improve credit and lending abilities going in to and through  the first months of 2021.

“We think that there will be some opportunity to replenish working capital, to pay down some debt that build in some of the last three years where profit margins weren’t as positive. And then as we look in to 2021, crop prices are very strong and there’s certainly an opportunity for producers today to take some of the risk off the table from a price perspective.” 

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail [email protected]

Share on facebook
Share on twitter
Share on linkedin

Leave a Reply

Your email address will not be published. Required fields are marked *