Strategies for rising production costs


Strategies for rising production costs

Some farmers are considering adjusting crop management plans because of rising production costs.

Purdue University Extension Corn Specialist Dan Quinn encourages growers to apply fertilizer for maximum return, not maximum yield.

“Is it worth it to push the last bushel or two with nitrogen or seeding rates or can we back off and use economic optimum nitrogen rates and optimum seeding rates for a much larger net return instead of a much larger maximum yield,” he says.

Shaun Casteel, Purdue Extension Soybean and Small Grains Specialist, says timely planting for soybeans will be critical.

“The ability to produce high-yielding soybeans that are profitable hinges so much on timely planting,” he says. “…we have to be timely in our planting and in doing so we can look at lower seeding rates because we have time for more branching and we can also look at that seed treatment that’s probably not the insecticide, but the fungicide.”

Purdue Extension Weed Specialist Bill Johnson says growers should figure out their ‘plan B.”

“Regardless of whether or not you can get enough glyphosate and glufosinate, you really need to build that weed control program with the residual as the backbone of your program so all you’re doing is some cleanup with your post-emergence herbicide,” he says. “That’s going to take some pressure off the yield curve from the standpoint of weed competition.”

Ag Economist Michael Langemeier says to not count corn out because of high production costs when planning for 2022.

“Look at the budget and profitability, if you can get the inputs corn is going to be very competitive this year related to soybeans,” he says. “…If you are looking at corn versus soybeans, make sure you keep your budgets up to date and don’t get scared by the high fertilizer costs for corn.”

Quinn, Casteel, Johnson, and Langemeier spoke during the 2020 Purdue Top Farmer Conference.