Planning for the future can be a very frustrating process, especially in times of market volatility. Planning typically pays high dividends. For most farm and ranch managers, developing realistic commodity price expectations is one of the most difficult and complex tasks of the planning process.
To make the planning process easier, North Dakota State University Extension has released its 2023 short- and long-term agricultural planning price projections for North Dakota, says Ron Haugen, NDSU Extension farm economist.
The publication shows 2023 price projections for crops and livestock produced in the state and price estimates for future years. Price projections are given for the major crop commodities, including wheat, durum, oats, feed barley, malting barley, oil sunflowers, non-oil sunflowers, corn, soybeans, canola, flaxseed, winter wheat, dry beans, dry peas, lentils, alfalfa hay and mixed hay.
Price projections for livestock and livestock products include beef steers and heifers at various weights, cull cows, slaughter steers, slaughter hogs, slaughter ewes, slaughter lambs, feeder lambs and milk. The publication also provides historical prices as a reference.
"The estimated short-term planning prices should be used as a guide in setting price expectations for 2023 production," Haugen says. "These planning prices can be used for preparing annual enterprise budgets and annual whole-farm cash flow projections. Cash flow projections are very critical with today's tight margins."
Haugen cautions, "Short-term prices should not be used for planning capital purchases or expansion alternatives that would extend beyond the next production year."
The "Plotting a Course 2023" publication (EC1090) is available online at ndsu.ag/plottingacourse or by contacting your NDSU Extension county office.
Categories: North Dakota, Business