3 Tips to Overcome Poor Market Predictions
Let’s face it, agricultural projections aren’t good right now. Some say U.S. farm income is headed for a 14-year low. It’s a scary time to be a farmer, when the cost to produce is higher than projected outcomes.
At some point, we start to ask ourselves if we are headed for another farm crisis like the one we saw in the 80’s. Is it time to start worrying?
Is history repeating itself?
According to local farmer and BigIron Auctions owner Mark Stock, the answer is no. We’ve been here before.
“Talk to any old timer, and they’ll tell you they’ve seen this a hundred times,” said Stock, who comes from a long line of farmers. “Over the years, dire predictions come and go.”
More often than not, something scares the market - perhaps it’s planting or harvest conditions, the unpredictability of the growing season, or the strength of the dollar. Whatever it is, projections change, prices bounce back, and the experts who made those projections often discover they can’t predict the future after all.
Security in lean times
According to Stock, the best way to respond to unfavorable outlooks is to go back to the basics:
Tighten your belt.
Analyze your operation for ways to decrease expenses. Spend money on what is necessary and avoid excess. Consider buying good, used equipment as opposed to new, and look for ways to save on seed and fertilizer.
Little tweaks can make a big difference in helping you break even. Some farmers have even become more creative with their farming options, looking to alternative crop options, such as popcorn, to supplement income during these lean years.
Few farmers understand the real cost of unused equipment that is sitting around the farm. Consider liquidating your assets to slide through these lean years with fewer loans.
Hope for the Future
It’s easy to get tunnel vision and fixate on the rough times ahead, but keeping a big-picture perspective is important. If you sat down with your great grandfather, there’s no doubt he could tell you stories from the past that would have you wondering how your family ever made it.
But your family survived back then, and chances are, they’re going to survive now. One day, you’ll be the old timer sitting around telling those young pups to hold onto their britches, because you’ve seen this all before.
Predictions and markets will come and go. There will be lean and prosperous years. But, if you play it smart, your operation will weather all the storms just fine.
Click here to find out how easy it is to turn unused equipment into cash with BigIron.