Preserving your balance sheet through challenging markets
A central Illinois farmer and grain marketing consultant says some farmers need to look further than maximizing return on investments in 2020 and focus on balance sheet preservation.
Matt Bennett with Channel Seed tells Brownfield producers are working through some tough times and there is no question that they will face more challenges this year.
“What can you do with $3.80 corn? I mean obviously it is not exactly a rosy picture right now, but I think one thing that a producer can do and do well is get better at knowing what their farm needs to be able to make things work.”
He recommends producers find a break even and follow their marketing plan with a business perspective.
“Prices are going to rally, that’s what everyone always thinks, but I want to be a little bit better businessman though. I want to be better at identifying my marketing plan in black and white, quantifying it, not getting so emotional and just treating this as a business.”
Bennett says with six years in a row of negative net farm income, farmers need to know how they can diversify, become more efficient and use talents they have to stabilize the farm.
Brownfield interviewed Bennett at the Illinois Soybean Summit.
Interview with Matt Bennett