When it comes to farming, there are many moving parts and uncontrollable variables. How do you manage all the risk?
Steph Berlett of Agromart Group says that we have to do everything in our power to manage the variables that are in control.
“Everything we do in farming is risk management. We’re banking on the rain, we’re banking on the heat. But we have to do everything else we can to set that crop up for success,” Berlett explains. “So when it comes to fungicide applications, for example, I take a step back and look at the crop potential. How did it go in? What conditions did it go in? How did it come up? How’s it been so far? What is the total yield potential? What is our disease potential? If you don’t think the yield potential is there — is it worth investing in that fungicide?”
Part of a risk management technique for 2021 is going to be securing your fertilizer needs for the season. Since the commodity markets have been high, the fertilizer market tends to follow; and if you know what you need, Berlett recommends locking in those prices now.
“They are still fairly similar to last year, but they are making significant leaps and gains. Locking in where you can, and taking advantage of your best dollar is in my mind a big forefront,” she explains. “Fertilizer is a huge cost on farm so if you know your rotation for next year, and you know what your needs are, I would look at strategically locking up whatever fertilizer you can.”