The short-term effects of the 2012 drought are readily apparent though we hope the feed price peaks are behind us. Looking through a banker's glasses at the waves resulting from a short crop... and what scenario for 2013 most concerns Jeffrey Swanhorst, Executive Vice-President of Credit and Chief Credit Officer for AgriBank.
We've been wondering just how much the uncertainty in the European Union and elsewhere could affect our grains and exports. Dan O'Brien, research and extension ag economist shares this insight with Eric Atkinson.
How will the general economic uncertainty affect the future of our industry? Jim Kielkopf, economist for AgriBank, discusses how economic uncertainty has impacted producer decisions and
what role speculators and hedge fund industry play in agriculture along with the global increase in commodity prices.
One of the options available to both livestock and crop producers is the ability to sell their products, and thereby establish a price, well in advance of the delivery of the final product. While this is can be done directly with futures contracts, many if not most producers do it through their packer or grain elevator using what is commonly referred to as forward contracting.
Historically, crop contracts on the Chicago Board of Trade have allowed forward pricing a few years ahead of delivery. For instance, you can price corn in the low $5 a bushel range today out as far as 2010. Livestock contracts have always had a shorter pricing horizon usually a little less than one year to about a year in advance.