Strong Agronomic Spring Expected to Benefit Farmer Cooperatives

DENVER, CO – Barring additional weather shocks, this spring is set up to be a strong agronomic season according to a new report from CoBank’s Knowledge Exchange Division. Farm supply cooperatives and independent retailers stand to benefit from strong input demand, rising commodity and fertilizer prices, and expanding soybean, corn, and wheat acreage. U.S. farmers are in a sound financial position heading into spring given the cyclical turn in grain prices and robust government support, both of which have driven a rise in net farm income. This, combined with other strong fundamental factors, generally positions U.S. farm supply cooperatives for a profitable spring agronomy season. Key risk factors do still exist for the planting season (potentially cold and wet weather) which could delay planting, and some logistical bottlenecks might also lead to input shortages in certain parts of the country.
(SOURCE: All Ag News)