Navigating declining farm incomes

By Jon Scheve, Superior Feed Ingredients, LLC

A recent headline caught my eye: “The Ugly Truth: 2023 and 2024 will go down as the two largest declines in net farm income ever.” 

Initially, I was surprised by this article because I assumed most farmers would have the majority of their 2023 crop sold by now and at near breakeven levels. However, elevator managers and bankers throughout the U.S. have confirmed with me that in general quite a few of their farmer clients don’t have all their 2023 crop sold and very few have started marketing for 2024.

In contrast, my 2023 crop was marketed at $5.90 long ago. And for my 2024 corn, I put on some simple floor protections last February that will likely provide a $5 floor value by next spring. Since these trades are still working, I don’t have the final number, but based upon where the market is currently at it seems highly likely that is where I will land. I… Continue reading