TOP FARMER WEEKLY PERSPECTIVE 12/30/2021 BY BRYAN DOHERTY
Reset for the New Year
The end of the year can be filled with emotion. There is little doubt that last year had challenges and victories. We are blessed to have made it through another year. As 2021 comes to an end, we are seeing some of the best grain and livestock pricing opportunities. When looking back at the March/April 2020 period when a new virus shook the world, things looked bleak from a variety of perspectives. On one hand, COVID has been a challenge; a difficultly that became a top priority for everyone worldwide. It has changed the world from so many perspectives. On the other hand, hard work, dedication, and doing the right thing continue to prevail in what is our new world order, dealing with and adjusting to a pandemic.
As we look ahead to 2022, farmers will continue to move forward doing the best they can. We will, too, work to provide the best content and ideas daily. The year 2022 will have its challenges for sure, perhaps many we cannot anticipate at this time. Yet, from a marketing perspective, we encourage every farmer to be vigilant in taking advantage of opportunities. Higher input costs are facing everyone – there are no exceptions. Keep your marketing pencil sharp. Looking back at this past year, one might argue that being complacent and taking little action may have been a good marketing approach. With prices high to start 2022, this same approach could be a disaster. No one knows. Ultimately, striving for consistent best practices will, in the long run, likely be a necessary approach. Doing nothing is a choice and, by some accounts, extreme.
A new year is also a chance to make a new commitment. Commit to learning more about your marketing alternatives. Knowledge is power. Spend time reviewing markets. Dedicate some time each day or week to review and stay informed. Work with your advisor, focusing on strategy. Strategy is preparing your operation for whatever the market does. Bottom line is that a new year is upon us, whether we’re ready or not. Those who prepare through learning, dedication, and strategy will likely better manage the potential price volatility to come, as we turn the page to 2022.
As with any strategy, consider the risks and potential rewards before initiating any position. Seek out a trusted advisor to help you, and take control of the uncertainties.
If you have any questions on this Perspective, feel free to contact Bryan Doherty at Total Farm Marketing: 800-334-9779.
Futures trading is not for everyone. The risk of loss in trading is substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Past performance is not necessarily indicative of future results.
Author
Bryan Doherty