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Jan 15, 2025
Sometimes it’s hard to get past the counterintuitive statement that “you have to spend money to make money.”
In a tight farm economy, those words are truer than ever, according to Kevin Carlson, Federated’s agronomy sales manager. “Scrutinizing input costs going into the 2025 growing season is good, but not at the cost of making money,” he said.
As input costs rose and grain prices dropped (in 2024), it’s easy to have a “kneejerk” reaction, said Carlson, cutting inputs to save money. But that may not be the best way to manage the upcoming growing season.
“It really comes down to knowing what your actual production history (APH) is – and then put a dollar value to that,” said Carlson. You need to evaluate fixed costs and determine input costs – “because you can’t save your way to prosperity; it’s going to be a little more difficult,” he said.
“Cut where you can, but you have to be careful and get the best return on investment (ROI) and work your way down the list from a priority standpoint,” said Carlson. It’s important to avoid cutting into yield potential.
Saving a few dollars per acre doesn’t make sense if those “savings” adversely affect yields.
“Look for the ROI and win percentages,” said Carlson. If a product proves itself as yield boosting (such as top-rated hybrids, fertilizer additives, and proven weed control products), spending the money on those products makes sense.
Spending more on P-Max LFS, for example (a fertilizer additive that protects phosphorous), can provide a 5 bu./ac. yield boost (proven in trials) – that translates into real dollars in the pocket. Some spending decisions need to happen in-season, such as applying additional fertilizer based on environmental/weather conditions.
Input costs that agronomically and economically improved yields in the past should not be on the cutting block. “You will make less money with those cuts,” said Carlson.
Federated Co-ops is ready to help you determine where to spend money on input costs and service. We are here to help, as Carlson said, “avoid kneejerk reactions … stay positive … and invest in the crop.” Call your Federated Agronomist today.
In a tight farm economy, those words are truer than ever, according to Kevin Carlson, Federated’s agronomy sales manager. “Scrutinizing input costs going into the 2025 growing season is good, but not at the cost of making money,” he said.
As input costs rose and grain prices dropped (in 2024), it’s easy to have a “kneejerk” reaction, said Carlson, cutting inputs to save money. But that may not be the best way to manage the upcoming growing season.
“It really comes down to knowing what your actual production history (APH) is – and then put a dollar value to that,” said Carlson. You need to evaluate fixed costs and determine input costs – “because you can’t save your way to prosperity; it’s going to be a little more difficult,” he said.
“Cut where you can, but you have to be careful and get the best return on investment (ROI) and work your way down the list from a priority standpoint,” said Carlson. It’s important to avoid cutting into yield potential.
Saving a few dollars per acre doesn’t make sense if those “savings” adversely affect yields.
“Look for the ROI and win percentages,” said Carlson. If a product proves itself as yield boosting (such as top-rated hybrids, fertilizer additives, and proven weed control products), spending the money on those products makes sense.
Spending more on P-Max LFS, for example (a fertilizer additive that protects phosphorous), can provide a 5 bu./ac. yield boost (proven in trials) – that translates into real dollars in the pocket. Some spending decisions need to happen in-season, such as applying additional fertilizer based on environmental/weather conditions.
Input costs that agronomically and economically improved yields in the past should not be on the cutting block. “You will make less money with those cuts,” said Carlson.
Federated Co-ops is ready to help you determine where to spend money on input costs and service. We are here to help, as Carlson said, “avoid kneejerk reactions … stay positive … and invest in the crop.” Call your Federated Agronomist today.