Farmers Look at New Ways to Cut Costs as Turning a Profit Gets Harder

By Michael Marks

Derek Davis, a fifth-generation farmer from central Missouri, says he probably puts more time and effort into testing his soil contents than most producers – both before he plants, and during the growing season.

“It allows us to project the next several weeks so that we can make corrections in season if needed to raise as healthy of a crop as we can,” Davis said.

Davis measures many characteristics of his soil, including nutrient levels. Knowing how much nitrogen or phosphorus is already in the ground can help farmers like him save on fertilizer. That’s especially important this growing season, because of the high cost of doing business for farmers.

Sharp increases in the price of inputs such as diesel fuel and nitrogen fertilizer are forcing farmers to make tough choices about how to spend their resources. That could include deferring equipment maintenance or upgrades, cutting back on pesticides or spreading less fertilizer.

DeDe Jones, a risk management economist for the Texas A&M AgriLife Extension Service, works with growers to help them turn a profit. That’s proving to be particularly difficult this year, though.