Flexible debt repayment contracts. If additional real estate debt is taken on, seek to minimize the amount of indebtedness. Look for flexible repayment contracts which will enable you to accelerate repayments during good years and reduce or skip payments during a two-three year period of low commodity prices. Using Market Transition Payments to pay-down debt may also be a good strategy. U.S. producers will benefit by becoming better informed about productions prospects in other important production areas throughout the world.
Most countries import only to meet unmet demand from domestic production.
If major producers of a commodity enjoy several years of good production, world prices can be expected to fall. Producers need to consider such information in forming production plans. Use price protection contracts. Producers can reduce some risks in commodity prices through various kinds of contracting arrangements. Develop diversification strategies.