The agricultural industry’s tie to nature comes with the unpredictability of the weather. Forecasts of droughts, floods, and other natural disasters cause commodity prices to fluctuate on a daily basis. Now with the increased globalization of the markets, weather around the world impacts prices of commodities as well as inputs supplied to the industry.

Other factors outside the control of the producer are the actions of governments both foreign and domestic. The effects of regulations such as farm programs, embargoes, and trade tariffs all affect the pricing, movement, and availability of commodities and farm input supplies.