Looking ahead into 2019, yield prices are on the low end. Research Specialist with the Gardner Ag Policy Program, Krista Swanson, has more:
“When we do our budgets, we always use trend yields until late in the growing season when a better estimate is available. For the 2019 budgets, part of the reason incomes are down is because we have had above trend yields for several years. So the yields being used may seem low to farmers, but using the trend line is the best approach until we know otherwise,” shares Swanson.
Swanson reports the inputs to go up in 2019 look to be fertilizer, fuel, the end of trade disputes and hopefully the increase of yields.
“When we get into next year and if we have a great growing season, things are looking good and we end up with higher growing yields that would certainly help the 2019 outlook. Another thing would be the end of the trade dispute. We don’t know what kind of impact that would have or what kind of reaction would occur, but we can certainly say it would improve things,” Swanson reports.
This time of year is a crucial time for a farmer as they prepare for the next planting season.
To hear Swanson’s entire interview, listen to the link below:
