Technology has come a long way in farming. According to Tommy Grisafi, commodity risk management advisor at Advance Trading Inc., it is impacting the farmer’s wallet.
“Technology has, in a way, hurt the producer,” Grisafi says. “It’s taken away the profitability so they’re working equally as hard producing more bushels and getting a lower price.”
Advances in technology mean farmers are getting more out of the land than ever before, which impacts the market.
“If you go to an agronomy meeting you should leave bearish in price” Grisafi says. "Because these leaps in tech are changing ag."
Technology in seed for example, has helped farmers today produce row crops at record levels—leading to large supplies. With USDA tracking yields and production, too, the markets know supply and excess supply even sooner than before. It takes a sharp producer to manage low prices and agronomics well.
"There are three things I've noticed that help someone do will in ag: own land, be awesome at producing bushels and be excellent at marketing," Grisafi adds. Hear the examples Grisafi gives on the innovations to technology on the farm on AgDay above.