Every fall, with their bins full of grain and an eye to the next planting season, farmers retrace their steps and evaluate the success of each strategy hoping to come up with adjustments that will drive yields a bit further next year.
As 2016 comes to a close, farmers are under even more pressure to tighten up on spending and squeeze more value out of on-farm investments. Commodity markets have been soft for some time — corn prices have dropped by roughly half since 2013 and soybeans are not far behind. This trend is compounded by the recent U.S. presidential election as well as the inherent volatility following the latest sweep of mergers and acquisitions involving some of agriculture’s largest global giants.
According to J.P. Gervais, the vice president and chief agricultural economist with Farm Credit Canada, farmers are looking for savings in their top three expenses: land rental, crop protection, and fertilizer and seed costs.
“Farmers need to understand we had some really good years, and this coming year will be flat or slightly up depending on quality issues,” says Gervais. “I think there is a softening, but not a weakening on the horizon.”
Indeed, these are volatile times in agriculture, which is why we are dedicating significant space in this issue to highlighting key strategies geared toward helping farmers not just weather the current storm, but also uncover new ways to cut costs, maximize resources and uncover additional value out of every on-farm investment they make.
We will focus on three key areas where you can implement new strategies that will drive success and boost your bottom line.
- Grain Marketing
- On-farm Technology
- Agronomic Precision
Stay tuned for our 3-part series!