It’s the time of year when farmers are usually in a “Battle for Acres” but for the 2016 crop, that’s not the case. The low price of corn and soybeans and the steadily high cost of inputs have farmers thinking twice about what they should plant next year.
“A lot of markets are trying to give away acres,” Brian Split of Allendale, Inc. told “AgDay” host Clinton Griffiths. The corn is still near last year’s levels and the soybean market is substantially lower. Most farmers are undecided on what they will plant.
Watch Split on this AgriBusiness segment of “AgDay”:
He says this tough choice comes down to what’s important to you. Consider these three areas when deciding what to plant in 2016.
Margins – Are you looking to margins to try and make a profit? That is likely to be tough in 2016. “If you’re basing planting decisions on margins as they are now you need to protect them,” he says.
Costs – Do you aim for profits based on which crop will be the least expensive for you to plant? Inputs are part of the profit equation too and farmers can seek to secure profits by maintaining the lowest input costs possible. “If you’re in a cash flow environment where you don’t have the cash to plant corn maybe you look to soybeans,” he says.
Agronomics – What are you good at growing? Split says the number one thing producers he talks with consider is agronomics. “What gives you the best shot at growing the best crop you can?” he says. Most producers will plant acres based on their ability to grow a high yielding crop. For most of the farmers Split has discussed 2016 acres with he says, “Sticking to the general rotations seems to be the most important factor.”
What are you planting in 2016? Let us know in the comments section below.