2021 Outlook Friendly for Crop Input Providers, Supply Cooperatives

Improving grain markets, last year’s federal payments to farmers and projections for massive corn and soybean crops this year have been a boon to farm supply cooperatives, distributors and retailers heading into the busy planting season. A CoBank report released this week shows margins will likely be strong for agronomy retailers and distributors “barring additional weather shocks.” Though the outlook is largely bullish for both those retailers and their farmer customers, one number could influence both agronomy product and service demand as well as general financial performance of farms and their crop input providers. Farmer debt-to-equity is generally expected to surpass 2020 levels, which could influence revenue potential for both groups if interest rates rise or inflation fears start to reach fruition. See more from the report.