An analyst with Rabo AgriFinance suggests government payments will be more of a factor as farmers navigate a post-COVID-19 landscape.
Steve Nicholson says prices over the last 10 to 15 years have been mostly profitable, so the government has not had to intervene.
“Now that the government is, farmers are going to have to be more conscious of that, also understand what his payments are going to be, and make sure he understands that in the context of his income statement.”
During a webinar Tuesday, he said that will have implications on ag bankers as well.