Volatility might be the name of the game in 2023, but an ag economist says what that means for producers is what’s front of mind.
Matt Erickson with Farm Credit Services of America and Frontier Credit tells Brownfield both livestock and row crop producers need to better understand their cost of production. “It’s so important to get your numbers,” he says. “Thank about your farm holistically and get it down to a per unit level. When you’re a livestock producer get it down to a per-head basis. If you’re a row crop producer get it down to a dollar-per-acre basis. That way you can think about this from a per-unit standpoint.”
He says if producers haven’t locked in all their production costs, they should play around with their budgets. “Do some different stress testing with them,” he says. “Put them against different revenue variables. Put them against your price with regard to yield to get your revenue.