22 November 4, 2014 2014 LOGAN COUNTY FARM OUTLOOK MAGAZINE LINCOLN DAILY NEWS.com
stand to lose approximately $248 per acre
on this year’s crop. Some early harvest
reports came
in saying
yields were
much better
than the
estimate
and local
producers
could be
looking
at 240 to
260 bushel
per acre.
But, with
a production cost per acre $881, the best
case scenario is that farmers are losing
approximately $41 per acre this year.
John Hartman of Farm Credit Services
recently said he believes sound
management is going to be a key to
surviving this harvest year. “Farmers will
have to push the pencil to try and figure
out if it will pay to wait,” Hartman said.
“Probably at minimum, sales will occur
only when they need to pay bills, loan
payments. This could put some pressure
on their lines of credit. Profit margins
look to be much tighter even with the high
yields. I don’t think the higher yields
will completely offset the lower prices.
Plus it always costs more to harvest a big
crop with more
fuel, repairs,
drying and
storage costs.
Hopefully,
farmers have
been building
their working
capital position
these last few
years. They will
probably have to
dip into it in the
near future.”
He added, “That last part sounded
negative, I would rather be cautiously
optimistic … so I am hoping for a price
rally … and soon!!”
Another factor Hartman said would
figure into this year is; do the farmers and
elevators have enough storage? “I think
the majority of this crop will be stored, in
hopes of better prices the first six months
of 2015. At issue is storage space; can the
elevators and on farm storage cover it?” If
the grain cannot be stored, then producers
may be forced to take what they get, and
hope for a better year next year.
