Planning For A Year Of Low Prices
Trent Brandenburg does not foresee any big corn and soybean market moves upward in 2018. He believes careful management to maximize yields will provide enough cash flow to maintain most farm businesses. A combination of low yields and lower prices will be challenging for operators paying very high cash rents.
Trent plans to keep his 50-50 corn and soybean rotation. “There’s more money in beans right now,” he mused, but he’s sticking with the equal split because of cultural advantages. Since he has no control over prices, he will use offsets to protect himself. He will not cut back on fertilizer because he needs the highest possible yield due to the low prices. He will be very careful with crop protection chemical use, applying only if his field scouting shows enough economic damage to justify the expense.
Trent views crop insurance as a not very good safety net, because of the low market prices making the available insurance coverage lower. He sees it as providing some limited help in a major crop damage event.
More from The Field Report
Not Much Field Work This Week
Trent Brandenburg does not plan on much fieldwork for this week, starting April 29, 2024. The huge squall line that extended from Texas to Green Bay, Wisconsin, over this past weekend, was far enough west to spare central Illinois from [...]
Machinery and Tile Repairs While Awaiting Warmer Weather
Trent Brandenburg is enjoying the first day of Spring finishing up some machinery repairs. His fieldwork right now involves fixing broken field tiles and clearing waterways to ensure good drainage during the crop year. Trent has not started serious field [...]
Need More Cold Weather, Warmer Markets
Trent Brandenburg wants more cold weather to freeze the soil deeper and kill more overwintering insects. "We are having too many 40-degree days," he observed. Trent noted, "Not much grain is moving," due to lower market pricing. "Eventually, the owner [...]