Stressful Times Expected in 2019 on Weather Concerns

(GREENWOOD VILLAGE, CO) The farm supply sector will be stressed in the year ahead on the combined impacts from inclement weather and strained farm financials. The warning comes from Dr. Will Secor, an economist for the Knowledge Exchange research division at CoBank. Ag retailers will be put to the test in a compressed spring agronomic season beset with bad weather, adding to the pressure from last fall’s poor weather. Some ag retailers may incur additional costs as a result. Secor also says that poor spring weather also puts sales and service revenue at risk from a shifting acreage mix and potentially higher prevented planting acres. Stressed farm financials will continue to negatively affect ag retailer margins and impact farmer decisions that could reduce sales volumes. The fertilizer segment, however, may be the lone bright spot as prices move higher this spring and acres potentially shift out of soybeans and into corn if spring weather improves.