Supply chain challenges to continue in ’22, but farmers have options
The senior vice president of IHS Markit says supply chain disruptions will likely continue in 2022.
Ken Eriksen says farmers should be prepared for product shortages and increasing input costs.
“The farmers are still going to be planting some big acreage this year and are going to need these inputs,” he says. “You better be prepared and have some alternative sources or buy ahead and the other side of this is people have been buying more products up front and building inventory and that exacerbates the problem too.”
Speaking to Brownfield at the Indiana Ag Policy Forum, he said farmers have options.
“Start thinking about other options for yourself not only to acquire inputs but also to sell into the marketplaces,” he says. “It’s usually at times like this when there’s disruption that opportunities emerge, and you have to start getting away from how you used to do things and look for some other alternatives that may be available to you.”
Eriksen says there may be a break in disruptions in the first quarter of next year, but the coronavirus and its variants are a wild card.
The forum was hosted by Indiana Soybean Alliance Membership and Policy Committee and the Indiana Corn Growers Association and sponsored by FMC. It took place December 2 in Fishers, Indiana.
Audio: Ken Eriksen, IHS Markit