Agronomy Outlook: Not the Spring Ag Retailers Hoped For

April 3, 2019

Key Points

  • The farm supply sector will be stressed in the year ahead on the combined impacts from inclement weather and strained farm financials.
  • Ag retailers will be put to the test in a compressed spring agronomy season beset with bad weather, adding to the pressure from last fall’s poor weather. Some ag retailers may incur additional costs as a result.
  • Poor spring weather also puts sales and service revenue at risk from a shifting acreage mix and potentially higher prevented planting acres.
  • Stressed farm financials will continue to negatively affect ag retailer margins and impact farmer decisions that could reduce sales volumes.
  • The fertilizer segment may be a lone bright spot as prices move higher this spring and acres potentially shift out of soybeans and into corn if spring weather improves.

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