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EC SoDak | You should’ve got ahold of me and stopped by!
The hope would be the shorts (2022-2025 so far) help keep a guy’s head above the water in the short term. From there, variable costs should adjust to the new market to an extent, hopefully a guy didn’t over extend on fixed costs too much. It’s been lackluster yields in my area through high prices, so it’s helped keep prices somewhat in line. Make no mistake, the folks around here paying 400-600 dollar newer multi year rents will have a hard time because they felt they just had to expand…
There are things a person can do to help it all along though. Around here, who knows what weather will do, but control what you can control. I put a lot of focus on marketing, because while I can’t control the market price, I can look at when to beat average price, how to price it, and then consider rolling and setting basis. Other things include doing things like conventional corn where it makes sense because it can yield rather well and your seed cost is about half, unless you’re Coup, and it somehow costs 1/10 (lol). Utilize personal storage to allow market carry and basis improvements of the market calls for it, years like 2022 the market said being it now. Have some silage to cut costs and spread out when things are priced. The last 7 years I’ve done non gmo beans (which require work for sure, who doesn’t love walking fields to pull weeds?) but can have 1.50-4 dollar per bushel increase in net per bushel price. Don’t own a ton of high priced iron and what you buy, do a thorough ROI cost analysis. And for the love of god, don’t put up a 3/4 million dollar shop to drink beer in and have the dealership come out to work on your stuff.
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So what happened to all this prevent plant?
