Sunday, September 28, 2014

sharpen those pencils

The difference between $5.50 and $3.50 corn

     Farmers are looking a much lower prices this fall and probably for the next 3 years.  Production has made up for the shortfall in 2012 and now a surplus of grain exists worldwide.  There were several things that farmers were doing when corn was over $5.00 per bushel to get that extra yield.  Now with the prospects of $3-$4 dollar corn not all of these will create an economic return.  On my farm I was spending $22.50 for a aerial fungicide and $22.50 for starter fertilizer put on at planting. If those got me an extra 8 bushels at $5.55 per bushel I had a return on investment.  Now the same investment would need to return 13 Bushels if the price per bushel was $3.50.  As you see response needs to be much higher to make up for lower prices.  I have already decided that those probably will not work for me in the 2015 crop year.  The next thing I will be looking at is my seed cost and especially "traits".  There is an extra cost for different levels of insect resistance and herbicide tolerances in corn hybrids.  Is it cheaper to apply insecticides or get that protection from the plant?  To determine this I will be looking at yield results and seed costs for each hybrid.  Most of this information will not be available until next month and my decision will be soon after that.
    On the bright side the last few weeks has let the corn dry faster in the field than I thought it wood.  Expect to see harvest progress and use caution when you see farm equipment on the roadways.  They are traveling at a much lower speed and at times cannot see what is right behind them.  Be safe and slow down.  Every year I see a car that forgets common sense.

                                                                                                 Serving together, Dean

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