The past few years, farmers have had the message of knowing your cost of production drilled into their heads.
On Monday, Jarod Creed of Gavilon told AgDay host Clinton Griffiths while not every producer will see a profit in 2017, “we’d be surprised at how many are.”
Creed said soybeans have seen a “nice swing” in prices. As a result, the “average American producer” is either breaking even or are making money.
Wheat is trying to deter acres, the lowest levels planted in the U.S. since 1909. Creed says there’s a long road ahead, and in order for wheat producers to make money, there needs to be an “unknown” in the market to “create a profitable situation.
Year-on-year costs are down between $40 to $60 per acre losses, on average. However, compared to this time last year, corn prices are up 10 cents higher.
Watch Creed discuss profitability in 2017 on AgDay above.