Market Advice to Young Grain Producers

Market Advice to Young Grain Producers

With the most recent supercycle of high prices in the grains commodity, many young grain producers are experiencing less than stellar prices for their first time since they began farming. Market to Market Host Mike Pearson who is an Iowa businessman and farmer recently spoke at a regional grain growers convention share this advice for young producers.
Pearson: “It has been good — there are producers that don’t know what LDPs are. And over the next five years, they are going to have seriously look at cutting their cost of living, reducing their expenses, and aggressively marketing. There are going to be some challenges. Bankers want to see proactive young producers cutting costs.”
In case you aren’t familiar with the acronym LDP — that’s a banking term for loan deficiency payments. Something that many in the grain business haven’t had to worry about for quite a while. Pearson continues
Pearson: “Find someone you can trust. The most important thing — I’m thinking from a young producer’s perspective — is find a mentor. Find somebody you see that has been successful and ask them question. Nobody is opposed to answering questions if they are coming from an honest place and you want to improve. Find a successful person who has been through ups and downs and see how they did it.”
Pearson’s Market to Market television program on Iowa’s Public Television station covers issues affecting agriculture and rural America.

 

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