Farm Management - 11.21.08
Input prices begin to decline
In recent weeks, nitrogen prices have
taken a downturn, but what the future holds for input costs
remains uncertain, said Lloyd Murdock, soils specialist with
the University of Kentucky College of Agriculture.
"Typically, when prices start to go down,
they begin to drop in one area first, and then the others
follow. So it's going to be a significantly different
situation for producers in the coming months," he said.
Prices for nitrogen have declined between
20 and 60 percent since this summer, with urea prices taking
the biggest drop. Producers are selling urea to dealers for
around $0.60 per pound, down from $1 a pound in July.
Phosphorus prices have declined by about 20 percent.
However, the price of potash remains unchanged.
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Farm Management - 11.14.08
Volatile grain markets, input costs affecting 2009 planning
As Kentucky producers begin to plan for
the 2009 growing season, they face several economic
challenges that could stymie their ability to obtain
operational loans and impact their decisions on which crop
to grow.
For a second year in a row, a lengthy
drought affected Kentucky's growing season resulting in many
crops not producing the yields that farmers expected.
Commodity prices are volatile and considerably lower than
this summer's prices. While there is speculation that
fertilizer costs will drop before spring, input costs remain
very high.
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Farm Management - 11.7.08
Plan early to save on 2009 inputs
Recent fluctuations in the commodity
markets and input prices have left farmers wondering whether
to purchase next year's inputs now or wait to see if prices
drop. Regardless of the price fluctuations, there are
several things grain crops producers can do now for the next
growing season to better manage costs in their agricultural
operations, said Chad Lee, grain crops extension specialist
in the University of Kentucky College of Agriculture.
When deciding which crops to grow next
spring, farmers can do partial budgets with current prices
to identify costs and potential returns. But given the
volatile markets, the best option is to maintain crop
rotations. Both soybean and corn yield better when annually
rotated. However, available credit and cash flow may be the
deciding factors for which crops are grown in 2009.
Read more.
Rising
costs put farming in center of perfect storm
For the first time in 30 years, grain
farmers received a raise, but they might not see as much of
it as they would like, according to a University of Kentucky
agronomist. Cattle producers are facing declining revenues.
Vegetable growers are feeling squeezed both on the farm and
beyond the farm gate. Blame it on the soaring price of
inputs.
Nitrogen prices are close to $1 a pound,
which can amount to $80 to $120 per acre depending on the
crop. Seed prices are going up. Fuel costs are sky high.
According to Chad Lee, associate professor in agronomy with
the UK College of Agriculture, everything's coming together
at the same time.
"Demand for commodities is high but so is
demand for inputs," he said.
The perfect storm.
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