Finding the Return on Crop Investment Challenges

Dec 14, 2021


Federated explores new technology to further improve service to growers.
It’s been said that failing to plan is, in essence, planning to fail. Based on the many lessons learned in 2021, planning for the upcoming season is critical.
 
“Things are not without their challenges,” said Kevin Carlson, Federated’s agronomy sales manager, “and that’s production ag. It’s how we manage through the challenges that makes the difference.”
 
Federated is here to help as best possible with product supply and agronomy management tools, services, and information.
 
“The obstacles in 2021 … supply challenges in particular … are projected into 2022,” he said. Additionally, there will be budget challenges because of input pricing for both fertilizer and chemicals. “Corn pricing to some degree carries input costs with it. With higher crop prices, “that looks to be true today.”
 
For better or worse, inputs have increased proportionately with the price of the crop. Fortunately, the ratio of crop prices to crop input costs is still at the high end of the ratio. “We have fairly expensive inputs, but the crop is more valuable, too,” said Carlson.
 
“Seed costs are basically flat,” noted Carlson, “so that’s a really good place to start investing in the crop – because the yield potential is in the [seed] genetics.”
 
Nitrogen products are at an all-time high in the marketplace, with phosphorus and potassium not far behind. “Making good purchasing and crop management decisions are really important in 2022 to get the return on your investment,” said Carlson.
 
Federated consistently looks at new technology, new products, and new things to evaluate agronomically.
 
“We are looking into drones as well as [various] biologicals (a growing segment in the marketplace); there are some opportunities in those,” he said. Everything requires an investment in time and/or money, so “we are always looking for the ROI on these options.”
 
As the saying goes, “you reap what you sow,” and in 2022, the reaping may come at a higher price than previous years. Facing challenges head on is nothing new and your Federated Agronomists are ready to help you find the right combination of crop inputs for your farm.
 
Your success is our priority. Talk to your Federated Agronomist soon to get 2022 plans mapped out.
 

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