With smaller net farm incomes, farmers have less money to spend to grow their corn and soybeans. To get through it, experts suggest a strategy: short-term investments, crop insurance, accurate records, cost of production and more.
“For many, thinking about short-term return on investment may be the best approach,” said Dan Burdett, head of Customer Marketing & Services at Syngenta. “It may be better to delay longer-term investments that offer long-term payback and zero-in on the next crop cycle. Focus on the crop now and leave big equipment and building purchases for later.”
And don’t forget that everyone has been in this kind of business climate before, says Mike Boehlje, distinguished professor of Agricultural Economics at Purdue University. “Pull out that old playbook—the one you used through the 1990s,” he said. “The downturn will be stressful, but we’ve done this before, and we can do it again. But if we don’t start doing these things now, that’s probably not a strategy for success.”
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