Tighter Margins Coming

I am finally caught up to to current on my winter reading program.  Recent Ag publications have run lots of advice about controlling costs and managing the business end of the farm.  Farmers and some advisers are facing some real challenges as we move into this potential period of tighter margins.  I am sure lots of decisions have been made about the coming year, but maybe there are some places that you can cut back even in 2014 and certainly beyond.

One challenge is weed control and herbicide resistance.  If you have lots of weed pressure, weed control is not the way to cut back, but you still need to be smart about managing weeds.  Research has consistently shown that weeds cost yield.  The late Dr. Marshal McGlamery always reminded farmers that one year of seed gives 7 years of weeds.  In other words if you don't control weeds this year, it will bite you in the butt for many years to come.  Be sure and follow recommendations to use soil applied residual herbicides and multiple modes of action.  Also look at controlling rouge weeds by hand weeding.  A 4 wheeler could save a lot of steps in the hand weeding process.

A step that will either make you money or save you money depending on your situation, is to know your fertility levels.  Soil testing more than 2 years old is just not adequate for the kind of decisions you might want to make.  Consultants are readily available to help you with soil fertility if it is difficult to sample in a timely manner.  Your consultant should also able to tell you how to get the most bang for your buck on your fertilizer program.  Also keep in mind that even with lower fertilizer prices, you could easily save money by using variable rate technology to spread fertilizer and lime.  Spreading lime with variable rate technology also assures that your soil chemistry will be correct so that nutrients, especially micro-nutrients are available.

Another thing to look at is tillage.  Even if you are not ready to no-till, you should still ask yourself if a  particular tillage pass is needed.  If a ready to plant field gets rained on, there may be no reason to till it again before planting.  Plant in that stale seedbed.

The added expense of planting cover crops may not look like a good idea, but consider the long term benefits.  Cover crops can build organic matter.  Legume cover crops can help you cut back on your nitrogen bill.  Cover crops may also be a key to reducing the effects of compaction.  Cover crops might help you implement a no-till system and cut back passes across the field.

Another thing to look at is cutting back on nitrogen.  The N-Rate calculator shows you the maximum return to money spent on nitrogen.  A quick look says that that at $700 per ton anhydrous and $4 per bushel corn shows you should be using 160 pounds actual N.  Nitrogen testing and sidedressing can also help you cut back on N.  Should you go to variable rate nitrogen?  If you are have a techology you are comfortable with, I would say, go for it.

Some of the pundits point out that family living expenses may be a place to look at cutting back.  In order to get buy-in, you may need to involve the whole family in those decisions or at least make sure they know why the decisions are being made.

Decisions about machinery purchase and technology purchase may also require more thought than in the past few years.  Money spent on maintenance may extend the life of machinery and be another one of those long term decision.

Bottom line is scrutinize everything.