Agriculture has experienced record profits in recents years, but that's all about to change, says Farm Journal Economist Bob Utterback.
Are the good times about to give way? Most likely, according to Farm Journal Economist Bob Utterback.
Markets are cyclical, and at 2013 Corn College, Utterback warned that the bull-market years that agriculture has been experiencing may soon give way to a bear market—if it hasn't already.
"We've had some fantastic profits in agriculture by record levels," Utterback said. "I make the analogy of, we just had a great party, we got up on the table and danced, we had a great time. But so did everyone else in the world. And now we're moving into the hangover year, and unfortunately the bills are coming due for all the fun, and nobody wants to pay the bill. And that's the problem is, how long is that bill going to be due?"
In order to manage their risk, Utterback said farmers should be looking ahead to the 2014-2015 marketing year and planning accordingly.
Listen to Utterback's marketing insight:
Thank you to the 2013 Corn College sponsors:
AgriGold, BASF, Chevrolet, ESN/Agrium, Great Plains, Honeywell, Koch, Novozymes, Precision Planting, SFP, Top Third Marketing