To help Iowa farmers overcome the barriers of making farm decisions based on impulse reactions or inaction, the Iowa Farm Bureau Federation is offering a first-of-its-kind webinar, titled “Irrational Farm Decision Making.” The webinar is open to everyone, and you are urged to tune in on Jan. 16. The webinar starts at 1 p.m. and lasts for one hour.
“Even though many farm business decisions can be logically made, those decisions can be influenced by our internal human wiring when we don’t even realize it,” says Ed Kordick, IFBF commodity services manager. “It is important to recognize that other factors have an impact on farm decisions when it comes to everything from renting land to selling crops.”
Kordick says the webinar will cover how “behavioral economics” influence decisions, and how these choices impact income and risk. The goal of the IFBF webinar is to raise participants’ awareness of their possible fixation on certain points or prices, what their current state of mind is when presented a decision and the behaviors that come from loss aversion. For example, is the range of possible crop prices still influenced by the high prices of 2011-13? Experts say fixating on a past situation, or “anchoring,” can really impact marketing plans and actions.
“Are landowners ‘anchored’ to the recent rent levels rather than remaining flexible so they can accept the going market rate? Learning about these concepts and more can help with decision-making and improve the future economic sustainability of the farm,” says Kordick. “We believe this webinar will help bring clarity to what’s motivating farmers toward action, and help Iowa farmers adjust with the times to remain financially and emotionally solid.”
The webinar is being offered at no cost and is open to all. An archive of the webinar will be available to Iowa Farm Bureau members only. Register online today.
Source: Iowa Farm Bureau