The 2017 Ag Outlook & Strategy Forum area meeting in Limon, CO on February 15, 2017 was attended by approximately 30 producers, financial business members, and crop insurance agents. The Outlook Forums are offered annually in locations across the state to provide an update on the current market situation and provide valuable resources in financial risk mitigation.
Dr. Stephen Koontz, ABM Economist CSU, spoke about the market outlook for 2017 and what the trends were indicating for both livestock and commodity markets. Dr. Koontz talked about many of the factors affecting the markets including: weather, import and export markets, global factors, consumer preference, product supply and demand,etc. He indicated that export markets and weather would continue to factor into price changes and showed that 2017 price projections do not appear to be showing any significant increases at this time as the U.S. currently is sitting on a surplus in commodities for both crops and livestock.
Brent Young, ABM Economist CSU, provided information about breakeven analysis and the importance of those figures to an operation. He indicated that because of the market outlooks, knowing the bottom line would be increasingly important for producers and their financial backers. Informational sheets to help with various commodity or livestock breakevens are available on the CSU Agriculture & Business Management site listed below. Brent also discussed risk management strategies relating to the five primary risk areas: production, markets, human, legal, and financial.
Christine Mergelman, Elbert County FSA Director, spoke with attendees about loans offered by the Farm Service Agency including: Loan Deficiency Program (LDP), Facility Loans, Marketing Assistance Loans and their importance in times of tough financial markets. She gave a quick update on ARC/PLC payments and what to expect from 2016. She also encouraged producers to watch the drought monitors going forward into spring for crop and livestock drought programs.
Contact Information & Resources:
- Extension contact information
- Payment calculators
- Custom rate information
- Breakeven worksheets
- Decision making tools
Stephen Koontz, Professor and ABM Economist
Phone: (970) 491-7032
Dr. Stephen Koontz (CSU Ag Economist)-Market Material
Brent Young, ABM Economist
Phone: (970) 522-7207
Christine Mergelman, Elbert County FSA County Executive Director
Box 188 504 Washington St. Simla, CO 80835
Phone: (719) 541-2358
*Presentations and resources are for informational purposes only. Producers are encouraged to speak with their financial, commodity, and insurance representatives for complete information.