How Growers Can Overcome Low Commodity Prices

Dr. Fred BelowThere are many issues growers face in today’s agricultural industry. One rising to the top of the list is low commodity prices.

Growers across the country are facing the harsh reality of a decrease in income forecasted for the third straight year due to an extended decline in corn and soybean prices. According to the USDA, net cash farm income for 2016 is forecast at $94.1 billion, and net farm income at $71.5 billion – following the declines in 2015.

One way growers can help their profitability during this time is to make sure they are getting the best yield possible, so they simply have more crop to sell.

Growers should make sure they are maximizing their production practices to help capitalize on the best potential yield:

  • Proper soil preparation, prior to planting
  • Applying crop nutrients and fertilizers as appropriate to help with emergence and throughout the life of the plant
  • Applying crop protection products as appropriate to help combat disease, weeds and insects
  • Proper irrigation, as appropriate
  • Effective harvesting practices and techniques

Secondly, growers should make sure they are using these efforts in collaboration with the appropriate seed genetics to get the best yield they can, which will give them more bushels to sell at harvest time.

In this video clip from June 2016, Dr. Fred Below with University of Illinois, explains that low commodity prices are one of the most important issues facing agriculture today and explains how growers can best deal with this issue.

Transcript:
Low commodity prices are a real problem, and the only way I can see to overcome those is to be able to produce more. If the price is low I need to have more of it to sell. So, I don’t think I’m going to save myself to prosperity because that would imply that I’m wasting money.

I think it comes down to having the basics to production correct, and make sure you’re using those to get as much yield as you can out of today’s genetics.

Original Source: Leaders of In-Furrow Technology, West Central

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