The phrase “unprecedented times” has been radically overused in popular media, yet it’s hard to deny a market where high crop prices may not bring record profits due to rising input costs. Farmers can book their fertilizer, fuel, and crop protection products ahead of time for the next crop year, but will they? Based on respondents from the latest Farm Progress PANEL, perhaps not.
We asked farmers “With input prices rising, many farmers are facing tough choices, what will you do?”
Just under 20% shared that they would book fuel and fertilizer now to lock in a price. For some just knowing input costs can be valuable in planning for the future. For this group certainty matters when budgeting for the 2023 crop.
About one-third of respondents say they will wait to book prices for those inputs in the fall. For this group locking in prices can provide certainty, but they’re also looking at the market and betting things will cool off later this year.
And one half of respondents are doing no advance booking. They answered, “Take my chances and buy as needed.” For this group, making deals as the crop season nears has most likely paid off for them in the past.
This survey shows the varying levels of concern or confidence for input pricing. Agriculture is an individual business where each entrepreneur-farmer (like most farmers are) makes their own decisions. In an industry where key players make a significant bet each season finding a comfort level for your approach to input buying makes a difference.
Thanks to everyone who responded to these PANEL questions.
Be part of the PANEL
The Farm Progress PANEL is your chance to share your thoughts on key issues. To take part, start by signing up for our daily mobile text service Farm Progress NOW. To do that text FARM to 20505 and be sure to respond to the text that follows we have a double opt-in system to make sure you're signed up.
Later in one of our daily update texts we'll provide information about how to sign up for the PANEL. And thanks to the respondents for helping us out. And if you’re already part of the PANEL, be sure to respond when that text comes. It just takes a moment to respond with your answer number.
Note: The Farm Progress PANEL is an opt-in SMS-based group. If you are a part of the panel, you may text STOP to unsubscribe.