World Conditions Impact Both Conventional and Organic Producers
By Harold Walker
Our National Farmers convention was an incredibly rewarding experience this year. The opportunity to interact with old friends and to meet new friends was a real privilege and generated new enthusiasm and determination to accomplish our goals as members and producers. The grain marketing world has been in a state of flux with incredible volatility and trends.
Our NForganics marketers have been experiencing a significant downturn in commodity prices and report that processors and other end-users are tendering significantly lower prices and contracts for organic production. This, along with transportation issues due to weather, have effectively reduced the movement of organic grain.
This has resulted in increased bushels available when conditions improve, which will support the downward price trend. The NForganics marketers constantly seek new markets and have developed relationships with many end-users, resulting in a bargaining advantage for producers.
Many of the USDA commodity reports do not align with industry and marketing analyst projections and findings. World impacts, including the war in Ukraine, inconsistent exports, currency fluctuations, and uncertain weather, continue to influence conventional grain markets, which are trending downward.
Domestically, planting intentions are up in the air as the weather continues to be a factor. Flooding, drought, prolonged winter conditions, affordable crop input availability, and other adversities continue to provide uncertainty when projecting planted acres for individual crops.
Your dedicated marketing staff, both conventional and organic, are committed to helping you develop a marketing plan for your operation. A comprehensive marketing plan, and the disciplined execution of it, will help to mitigate the market uncertainty and volatility for your farm.
Wishing all of you a safe and productive planting season.