Farm Horizons
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Feb. 8, 2016
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Page 16
Tightening belts in 2016
I attended a two-day crop conference reFertilizer – Very few university studies
cently in Minneapolis, and one of the speakhave found micro nutrients, such as Boron
Dave Schwartz or foliar fertilizers, to be cost-effective.
ers discussed the agriculture outlook for
Certified crop advisor When fertilizing corn, for the most part, I
2016. His presentation was titled “Turbulent
Gold Country Seed
Times in Agriculture.”
recommend growers stick with the basics:
It was one of many presentations I heard
nitrogen, phosphorus, and potash. These are
during the conference, but it is the one preconsidered the macro nutrients that are resentation that stuck in my mind.
quired most by corn plants.
The speaker, Bob Craven with the University of Minnesota
Over the past 10 years, we have seen a benefit by adding 10
Center for Farm Financial Management, shared with the audi- to 15 pounds of sulfur per acre.
ence adult farm management record data from the past few
The other nutrient that may be needed is zinc, but only if
years, so it included average expenses and income of farms soil tests call for it. Be sure to soil test fields every three to four
from across the state.
years, so we know exactly what to apply.
In general, farmers enjoyed very good income years from
Land rent – Negotiate land rents down to a level where
2010 to 2012, when corn prices rose at their peak to more than crops cash flow. If that is not possible, it may be wise to look
$7 per bushel. This drove up land values and rents to record for other land.
levels.
This may be the time to learn more about flexible rent leasThis is not the situation anymore.
es, where a base rent is set with incentives to pay more if yields
Corn is expected to be somewhere between $3 and $3.25 per or the grain markets are above average.
bushel next fall at harvest, and soybeans in the $8 per bushel
The University of Minnesota Extension office is a good
range. These prices make it difficult for most farm operations source for this type of information.
to cash flow, so let’s see where growers may be able to reduce
For growers facing cash flow problems, it may be best to adcosts, yet maintain grain yields and be profitable.
dress the issue now with your lender, rather than put it off, to
Seed – As a seed dealer, I sold more straight Roundup corn only see the situation worsen.
hybrids, and even conventional seedcorn to help growers manTry to be proactive, by working with lenders now on cash
age costs. For the most part, I only sell smartstax hybrids in flows and doing whatever it takes to make the operation profitsituations where growers absolutely need continuous corn.
able. n