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Croswell, Michigan |
I think for most the 2022 input season is behind us. Either you bought early, bit the bullet and paid up or you cut back some. Looking ahead for 2023 it will be curious to see what unfolds.
I always thought if you could maintain a certain ratio of input costs vs sales you would be okay. Using nitrogen for example if it took X amount of bushels to buy a ton of 28 and that stayed constant following the markets you would be okay. In the fall of 2020 with $4 corn and $180 28% it took 45 bushels of corn to buy one ton of 28%. Today with dec corn around $7.30 and 28% at $700ish it now takes 95 bushels of corn to buy a ton. This is certainly making us go backwards. Trend line yield increases are not going to make up that difference and I would expect other inputs are very similar to this.
One would think we should certainly be near or at the top but in this world environment I’m not sure I’m willing to make that bet. Part of me says don’t pull the trigger on anything this summer or fall for next year and play the waiting game. On the other hand for tax reasons we have been in the pattern of buying as much as possible for the next year prior to the end of December.
What are you guys thinking/doing for the next year??? | |
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2023 inputs?
