With prices up on nearly everything these days, the anticipation of great yields this harvest season is on the minds of every farmer out there. Local Compeer Financial Officer Brian Postin sets the stage ahead of the upcoming harvest season:
“Last year, at least locally, we were kind of saved by very strong yields. Production kind of helped offset the prices that were below where they needed to be to make some money. For this year, unfortunately, prices have not changed, they are actually a little bit lower. It looks like we have a decent crop out there; we are going to need a decent crop just because of the input costs. Everybody feels it. The prices with everything you do are up. Every time that you go buy a part, every time that you need some kind of service call, some kind of labor, anything that farmers are going and buying are more and more expensive and yet the price that they are receiving for their product is less, it is just a challenge right now. Plus, then you have your normal living expenses, your insurances, your food; everything is just more expensive. Farmers are starting to feel the crunch of that,” states Postin.
“One thing that seems to be helping farmers minimize their losses is they are hedging right now. So, risk management plans are crucial to navigating these times. Just be aware of where you are at,” adds Postin.
Postin says it is crucial to run the farming operation as a business and maybe delay those asset purchases, at least for now.
