Food is a necessity for the ever-growing world population. Countries that heavily focus on the manufacturing and services sectors—like the United States—are cognizant of the importance of reliable and steady food supplies too.

Having access to nutritious food that meets people’s preferences depends on various factors—often ones that are beyond your control. Food security doesn’t just include the availability of food, but also its stable supply and accessibility for all.

A woman walking past empty grocery store shelves due to food shortages

However, recent events around the world have taken a toll on food security. As global food systems are exposed to vulnerabilities, even the United Nations is forced to reconsider its plans to eradicate hunger by 2030.

Persistent climate change

Changing climate trends around the country have had an unprecedented impact on livestock and crop viability. Higher costs, yield losses, and lower efficiency are just some of climate change’s impacts on agriculture.

Changing rainfall patterns and unpredictable temperature variations affect yields and force producers to adapt. Smooth supply chain functioning in the agricultural sector will ensure food security, but how can it be achieved?

According to one organization, the answer lies in farmers and ranchers rethinking their choices. New markets, focusing on agricultural marketing, adopting the latest practices, and minimizing losses in the commodity markets are some ways this can be done.

The COVID-19 impact

Among the many devastating effects of the pandemic, the impact on food security stands out. Empty grocery store shelves and low farm productivity were far too common in the early stages of the pandemic. The situation was made worse by bulk buying and the unmatched demand of panicked buyers.

Agricultural producers—deemed essential workers—have had to work harder to combat the looming food crisis. The Organization for Economic Cooperation and Development stated that food availability isn’t the problem, it’s the disrupted supply chains and increasing demand.

The health crisis has turned into a food crisis because trade disruptions, border closures, and the halting of production have become a global problem.

A farmer harvesting carrots

Prepare for the risks beforehand

For agricultural producers, it’s no secret that agricultural markets are volatile. Uncertain yields can be caused by a variety of reasons, often affected by external factors that are beyond your control. On top of this, prices are in constant flux, making financial losses an ever-looming possibility for many ranchers and farmers.

Maintaining yields and working toward ensuring food security means using the right strategies to overcome hurdles and mitigate financial risks. Techniques like hedging and grain marketing can help you protect your farm’s optimal operations from the volatility of the agricultural markets and external factors alike.

To manage the declining food security, agricultural producers need to respond with revenue-maximizing strategies that allow them to re-invest for the next cycle. That’s where we come in.

Chris Robinson of Robinson Ag Marketing offers over three decades of experience in agricultural marketing and trading. We provide insight into trade marketing, agricultural marketing, and cattle marketing, using our analysis and industry knowledge to help you succeed.

Our assistance enables our clients to develop tailor-made long-term plans. Sign up for a free 30-day trial of the Robinson Review today. You’ll gain access to live audio services, exclusive daily comments, futures prices, regular weather updates, and much more.

Contact us to learn more about risk management and commodities marketing.

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