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Cutting $100 an acre from corn and soybean budgets – especially in the Midwest – will be a critically important step for farmers who expect to remain viable in 2016 and beyond. That’s particularly the case for growers who mostly cash rent land.
Dr. Gary Schnitkey, professor of farm management at the University of Illinois, says that it won’t be enough to trim fertilizer, seed or equipment costs. The big reduction will have to be in what farmers pay for cash rents, which for many is the largest line item in their crop budgets.
In this podcast, Schnitkey discusses what’s at stake and the dynamics that will influence how cash rents run as we head into the next crop year. He also delves into mistakes that farmers might make as they push to reduce inputs. Farmers will have to weigh each expense and be prepared for tradeoffs between money put into the crop and potential yields.