Farmers throughout the Midwest are sharpening their pencils and trying to determine the best course of action for next year according to Matt Bennett of Bennett Consulting.
“Soybean prices aren’t quite as high as they were last year so it’s not really a slam dunk for most guys to plant soybeans,” he says. “As far as corn goes, input prices haven’t come down. Profitability is going to be even tighter than it was last year.”
Determining what to plant next year is top of mind for farmers and because of the current commodity market it’s not an easy decision.
“As far as crop rotation goes, that’s a tough ballgame,” he says adding, “a lot of guys are making decisions now, but certainly there will be more swing acres than we’ve seen in a long time.”
Bennett says that while the majority of farmers had a good crop last year, most didn’t make as much money as they thought they might. As a result many farmers have eaten into equity and bankers are getting nervous.
“Bankers are going to be looking very closely at [debt to asset] ratios,” he says. “We’re going to have to be better businessmen than we’ve been.”
Bennett encourages younger producers to seek wise council from older generations for guidance on surviving tough times like the 1970s and 1980s.
“We need to understand what it’s going to take to be able to get through what will probably be the toughest time in a lot of our careers.”
Watch the entire interview with Matt Bennet in AgDay’s AgriBusiness segment below: