As farmers feel the pressure of a depressed commodity cycle, they are looking for ways to manage anticipated continued tight margins by reducing inputs. Input decisions will be evaluated for the greatest return on investment, mostly driven by yield output as margins compress. Without significant new demand for U.S. commodities or a major world weather event in the years ahead, commodity prices may fall short of covering all the input costs for many crops and add additional stress to the ag economy.
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Jacqui Fatka
Tanner Ehmke is lead economist for dairy and specialty crops in CoBank’s Knowledge Exchange research division, where his focus is on providing market and industry research for the dairy and specialty-crops sectors.
Jacqui Fatka is lead economist for farm supply and biofuels in CoBank’s Knowledge Exchange research division. During the past 20 years she’s honed her expertise in ag policy, biofuels, trade, regulations, ag labor, climate-smart agriculture and farm management.
CoBank is a $158 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. It’s a member of the Farm Credit System. Visit www.cobank.com for more information.
