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Jeff_a_Caldwell
Senior Contributor

Getting ahead of 2012 input costs

A report this morning shows there are a lot of signs most all input costs will be higher for next year's crop -- to the tune of around 15%. Here's more on that report.

 

 

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27 Replies
kraft-t
Senior Advisor

Re: Getting ahead of 2012 input costs

It seems to me that all our conservative farmers with debt would cut spending acroos the board regardless of circumstances. Because that is their recipe for the federal government and to do any different personally would be hypocritical.

 

ME? I'll be buying what I need and paying the price.

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Nebrfarmr
Veteran Advisor

Re: Getting ahead of 2012 input costs

As a 'conservative' farmer, I wonder why some non-conservatives feel the need to turn every thread into an insult towards us, but anyway, here is what I have done so far:

Locked in my fertilizer prices @ rates according to my latest soil test.  I can adjust it a little by the after-harvest tests if need be.

 

Locked in my seed prices.  I know harvest is only 1/3 over locally, but I used rainy days to scout fields, to see what I liked, and didn't like.  My seed prices are established, and the varieties I want are locked in.

 

I am currently watching fuel prices, but haven't bit the bullet yet.  Still watching that one, but I've got a pretty good guess what it will be.

 

Using my known fertilizer & seed prices, and best guess at fuel prices, and last year's insurance costs, I have sold enough corn to cover all those expenses, which is less than my insurance guarantee.  I may sell some more on a bounce, if the price is appealing, up to my insurance guarantee, which should give me a decent profit.

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kraft-t
Senior Advisor

Re: Getting ahead of 2012 input costs

Insult? That is exactly what you recommended for the debt ridden federal government. Now you are going to ignore your own debt and spend what is required?

 

 

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Jim Meade / Iowa City
Senior Advisor

Re: Getting ahead of 2012 input costs

To be honest, I've done nothing yet.  I'll price fuel this winter when it is cheapest.  I may buy seed this fall, but that will depend on yield reports.  I apply fertilizer in the spring and usually you can't buy it this far out.  I'm not sure what that leaves me.

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Nebrfarmr
Veteran Advisor

Re: Getting ahead of 2012 input costs

I apologize for replying to Kraf-T's comments, as I belive this forum should be for serius business discussions, and should be for respectful discussion. 
If he wishes to continue this discussion, I'd be willing to reply if he takes it to the Ag Life forum, otherwise I promise not to stoop to his level here again.  Any disparaging remarks will be ignored.

 

Once more, my apologies.  I should have known better.

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nwobcw
Advisor

Re: Getting ahead of 2012 input costs

  Kraft is like the school yard bully that lost his bully side kicks to impress and is looking for different tactics to keep his standing.

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kraft-t
Senior Advisor

Re: Getting ahead of 2012 input costs

Really? Have I bullied you?

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clayton58
Veteran Advisor

Re: Getting ahead of 2012 input costs

there is no comparison between a business spending money in the course of doping business, and the government spernding money.  to compare them is apples to oranges.  One of the big differences is that a business is spending its own money, where governement spending is money taken by force from others.  Would anyone like to send me $$$ to finance my inputs?? and no I am not going to pay it back, and I'll probably spend about 150% of what is returned.  Thats how it would be if I was running my business like the gov. runs theirs.  (Except instead of asking for $$ I would require everyone to send in some so I can continue spending)

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nwobcw
Advisor

Re: Getting ahead of 2012 input costs

  I don't see anything wrong with managing income vs. expenses to avoid taxes.  It's shrewd to do it.  After all, you're just playing by the rules gummint made.

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