
At Farm Press we are keenly aware of the tight situation facing the agricultural sector this coming season.
As we face the economic impact of continued rising operating costs and low commodity prices, we are working to supply you with information that may help you in your operation. We are also asking for your input to provide information within our print and digital formats that would best serve producers.
Please let us know the kind of information we need to provide you. Here are a few things we can recommend.
Smart management practices are key to adapting to challenging times. Even in excellent years, these practices are the principles that make the difference between an adequate producer and an excellent producer.
Cost management is probably the top tool to consider. Monitor your input costs by knowing where to go for the best prices on seed, fertilizer and fuel. Also consider purchasing in bulk or forming a buying group to better position yourself with supply.
If you are able, optimize resources by using precision agriculture to reduce waste and maximize the efficiency of your resources. Check out the cost effectiveness of data assessment and precision input application. The benefit might surprise you.
Diversification should also be a consideration. A high-value crop – produce, specialized grains or cotton, livestock - with a dedicated market and demand may mitigate the risk of market volatility. But be aware of transition costs and pay close attention to marketability.
Check out market strategies by building strong relationships in the industry with cooperatives, local buyers and commodity groups. This also helps producers stay on top of market trends and consumer preferences. Getting involved is a key step to new ideas and market knowledge.
If you are in the position to consider online marketing, by all means investigate what it can do for your operation but be aware of the risk.
Be sure to manage your risk by investing in crop insurance and other smart risk management tools. Start at your local FSA office.
Be mindful of fly-by-night schemes or unnecessary programs. And do your own investigation. Unless someone has an excellent track record, be wary of investing in a program with little history - now may be the time for some operational changes, but it can also be a bad time for high-risk changes.
Now is a bad time for overleveraging. As we face the challenge of this new year it’s a good time to renegotiate current loans or look into securing more favorable terms. Many ag lenders may be willing to renegotiate terms knowing that the next year or two may be difficult.
Above all, keep a good head on your shoulders. Don’t be pressured into making a risky move.
And, if there is any information we need to address or investigate at Farm Press, please let us know.
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