Farmers Urged to Plan Strategically During Uncertain Economic Times

By Andi Anderson

Farmers are facing increased economic uncertainty, prompting experts to stress the importance of strategic planning. During a recent session, economists advised growers to assess risks, manage costs, and make informed business decisions.

According to the USDA, Michigan lost 1,300 farms and 100,000 acres of farmland in 2024. Tariffs, economic fluctuations, and global tensions add to the challenges farmers face. Trey Malone, an agri-food economist at Purdue University, emphasized the need for careful decision-making.

“Farmers must shift their mindset from ‘Can we grow it?’ to ‘Should we grow it?’” said Malone. He urged growers to analyze market conditions before committing to crops like industrial hemp.

Malone highlighted the importance of industry knowledge. “If you're in cherries, chippers, corn, or soybeans, you need to understand your market better,” he said. Farmers should strengthen relationships with suppliers and develop effective marketing strategies.

Economic uncertainty can also lead to innovation and growth. “Many Fortune 100 companies started during the Great Depression,” Malone pointed out, urging farmers to adopt Real Options Thinking, which focuses on identifying valuable opportunities amid uncertainty.

Michigan Farm Bureau economist Loren Koeman advised farmers to balance land loss with yield gains and explore cost-saving strategies for fuel, fertilizer, and labor.

Malone also recommended a lean-startup approach, helping farmers evaluate their financial stability and burn rate—the time they can sustain operations while testing new strategies.

By staying informed and adaptable, farmers can navigate uncertainty and strengthen their operations for the future.

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