Posted by Tyson Raper on behalf of the author, Dr. Aaron Smith
It’s a challenging time for crop producers to manage input price risk. Input prices for fertilizer, crop protection (chemicals), machinery, fuel, labor, rent, and insurance are up substantially compared to last year at this time. Additionally, availability and timeliness of delivery are a major concern. Fertilizer prices highlight this dramatic increase in the cost of production (graphs above). Most common fertilizers have more than doubled compared to last year. As such, producers are seeking strategies to reduce input costs. Two recommendations, as a starting point, are soil sampling (know what you’ve got) and crop selection (know current relative cost and revenue relationships for commodities produced on your farm). Unfortunately, there is no “silver bullet” to mitigate rising input costs and availability concerns. So, producers will need to be creative in their approach and consider numerous strategies. Continue reading