Smart Farming Strategies for Uncertain Times: Market Insights & Financial Tips

The Fall 2021 issue of Intelligent Farmer equips farmers with actionable strategies to navigate volatility in markets, construction costs, and land management. From crop updates to financial planning, here’s how to reduce risk and strengthen your operation.

Click here to download the full Fall 2021 issue of Intelligent Farmer today

Grains & Oilseeds Update: Volatility Ahead

• Soybeans: Tight global supplies and strong crush margins drive demand, but China’s absence in new-crop exports and South American weather uncertainty create volatility.
• Corn: Ethanol demand remains robust, but export competition from Brazil and high fertilizer costs pose challenges.
• Wheat: Poor U.S. and Canadian spring wheat crops tighten supplies, with prices hinging on southern hemisphere harvests.

Financial Health: The Power of Record-Keeping

• Accurate records are critical for informed decision-making and securing better lending rates.
• Track production costs per acre/animal, monitor cash flow, and use technology to streamline bookkeeping.
• Banks favor farmers who provide timely financial statements—this improves loan approvals and rates.

To Build or Not to Build?

• Skyrocketing material costs (e.g., lumber prices up 300% in 2021) make construction risky.
• Flexibility in contracts and trust-based client-builder relationships are essential to manage volatility.
• Consider delaying projects if possible, but act when interest rates are low and opportunities align with long-term goals.

Renting Farmland: 4 Key Advantages

1. Cash Flow Preservation: Avoid tying up capital in land purchases, freeing funds for equipment or quotas.
2. Flexibility: Easily adjust acreage based on business needs without the hassle of selling property.
3. Debt-to-Equity Management: Renting keeps debt levels in check, improving lender confidence.
4. Long-Term Acquisition Opportunities: Renting allows relationship-building with landowners, increasing chances to buy later.

Don’t miss the full issue.

Read the Fall 2021 edition of Intelligent Farmer for deep dives into market trends, financial strategies, and real estate insights to future-proof your farm.

RBC Dominion Securities Inc. | Lorkovic DeKoning Wealth Management | www.lorkovicwealth.com