Q: What are the most important decisions you will make on your farm this winter and why?
A: I will make two important decisions this winter. The first, marketing my grain, and the second, securing what we call “inputs,” such as fertilizer.
With current world turmoil, price volatility remains constantly on our radar. Margins change daily, and so does the price offered where I sell my crops. I must know my breakeven point, and my trucking costs, so I can determine the buyer. I am fortunate to have 10 places within 60 miles of my farm where I can sell. These include two ethanol plants, one soybean processing plant and a specialty corn milling plant. This allows me to deal with price volatility while still making a living.
Securing inputs at a cost-effective price has become a major decision for farmers. For example, the cost of some fertilizer has gone up at least 200% in the past 18 months. I used to pay $400 a ton for DAP (diammonium phosphate). This past farming season, I paid $1,000 a ton. I cannot grow corn without DAP.
I work with many suppliers to secure the lowest price for my input needs. These prices change daily. Knowing what my breakeven is, when to purchase and how much to buy is also important.
Seth Root grows corn, soybeans, sorghum and wheat and has a drainage business near Bone Gap in Edwards County.
