With three busy kids, my wife and I are constantly on the go. Between practices, work and school events there are plenty of nights when dinner at home is a challenge. Three years ago, we often found ourselves frequenting a local restaurant after a basketball game or grabbing food to go in between practices. Today, it happens a lot less. Our reason is, like so many others, the rise in food costs require we be better stewards of our finances.
As farmers look out into 2025, the last data from USDA’s Economic Research Service projects input costs to remain high. For corn, that means $871 per acre, and for soybeans, it’s $625 per acre. While trending lower, both remain well above the inflation kick-start of 2021. The bottom line is that when wages, or in this case, commodity prices don’t go up or remain somewhat elevated, and costs remain high, it’s hard to make the numbers work.
A Business Decision
Which is why, when we talk about sustainability, it starts as a business decision and making sure the farm can remain financially viable. Then it’s time to look at systems, strategies and technology. In the current environment, ideas must come with neutral to lower costs or real ROI. Conservation and sustainability measures are no different nor are they immune to the financial realities of today’s markets. That said, taking the long view on soil health, water and protecting the farm’s most essential resources is also vital to longevity.
Balancing Both
As you wrap up 2024 and take on the unknowns of 2025, I hope your operation finds a pathway toward sustainable success. The road might look different this year as you traverse the challenges ahead. This might be the year to do something different. Explore new ways to buy, hire or work. Evaluate the product mix, brand loyalties or selling points. If ever there was a year to look at the status quo with fresh eyes, 2025 could be the opportunity. As you embrace family and friends this holiday season, may the gift of farming continue to bless your home for generations to come.
No one knows better than you that the future of your farm depends on balancing practices and profits that sustain your land, resources and family. The stakes are evolving based on weather patterns, technology, market demand and more. What actions are you taking to remain resilient?
