We are in the midst of a local drought. This seems to be foremost on producer’s minds.
Producers who are proactive and good marketers have new crop sales on at good prices. But dryland corn looks to be a near bust this year. Some producers are scaling back or canceling sales to more accurately reflect current production levels. There is a lot of feed crops planted wheat stubble and in places where the corn has been chopped, milo or sudangrass is being planted for cattle feed. Producers have also scaled back or stopped machinery purchases.
Most producers will survive through these trying times and will see better situations in the years to come. They have seen times like this before, and likely will see them again if they farm long enough. On the brighter side, the soybean crop needs timely rains, but we still have a chance for good yields.
Reflecting on the drought we are currently facing, I am reminded of the old saying “When times are good, we borrow money. When times are bad, we pay it back!”