Farmers are facing a very different economic landscape 
today. Commodity prices are lower and interest rates are higher. “It’s not business as usual,” said Tony Jesina, senior vice president of crop insurance, Farm Credit Services of America. “Farmers need to take a look at some different options than may have considered in the past.” Firstly, it is important to know the cost of production. Secondly, Jesina concentrates on the cost of production relative to the market. That data may require adjustments in the farming operation. “Maybe it’s how your debt is structured; maybe there’s a way to restructure or rebalance your debt so that the cash flow is more in line with where your revenue’s going to be going forward.” Ultimately, a risk management plan is needed to protect the bottom line.
