The drought of 2012 has been brutal. The Midlands NAMA Chapter hosted a panel discussion in Lincoln to talk about its impact on agriculture. Panelists included: Jesse Dotterer, Market Advisor; Ryan Huffstutler, Ag Finance Specialist; Matt Hoxmeier, Ag Risk Advisor, all of Water Street Solutions; and Kent Thompson of Kruger Seed. Approximately 20 members attended this informative panel discussion.

The discussion started by talking about the emotional impact of the 2012 drought. During planting season and in the early growth stages, farmers had a lot of hope for a great year. Fear began to set in and quickly turned to despair after weeks of no rain. According to Dotterer, “Farmers who quickly put emotions aside and got down to facts were able to turn their stress around.”

The entire panel agreed that having a well understood plan was crucial to their farmers’ success this past year. “Informed producers were prepared to make better decisions,” said Huffstutler.  A good representation of this is when a farmer fully understood how lower premiums in crop insurance led to lower coverage levels. “An example is a farmer we work with who had the right coverage and right insurance products in place.” Hoxmeier continued, “for this farmer, the difference meant this producer could farm another year versus taking a $500,000 loss.”

Kent reminded the group that, good, solid farmers make wise decisions consistently year after year. They have a diversified plan, specifically able to deal with the many unknowns that can arise in farming.” These farmers capitalize on profits in good years and are able to build a financial cushion to help them in tough years.

How does this past year impact farmers going forward? It’s important for farmers to build a relationship with suppliers and service providers to receive the education on the various products available. When it comes to purchasing for 2013 – farmers should be looking at their breakevens to understand their need for crop insurance, fertilizer, seed and other inputs.  And the final piece that the panelists felt would be important for farmers in 2013 – be consistent with a plan, look at the facts and make informed decisions. Don’t let emotions take over and drive poor decisions.