Extension Communications
3614 Administrative Services Building
Ames, Iowa 50011-3614
(515) 294-9915
10/8/98
Contacts: Mike Duffy, Extension Economics, (515)
294-6160
Dale Farnham, Extension Agronomy, (515) 294-1923
Rich Pope, Extension Entomology, (515) 294-1101
Regis Voss, ISU Department of Agronomy, (515) 294-1923
Doug Cooper, Extension Communications Systems, (515)
294-6275
Treva Blumenshine, Extension Communications Systems, (515)
294- 5672
ECONOMIC ADVICE FOR PRODUCERS FROM ISU EXTENSION
AMES, Iowa -- With the concerns of farm financial conditions and the planning for next year's crops, it is important to consider alternatives. Iowa State University Extension offered ideas to reduce input costs and maximize profits on the WOI Midday show on Oct. 5.
One way to reduce input costs and maximize profits is to determine the farm resources. Mike Duffy, ISU Extension economist, said, "There are no substitutes for the basics, you need to remember what resources are available and what the goals are in combining those resources."
Duffy offered these suggestions for financial planning:
- Look at the condition of the balance sheet. Turn
credit card and short-term debt into longer-term debt if
possible. This should allow for more favorable terms.
Manage your farm based on the resources available. Do
what works for your circumstances and goals.
- Financial planning, input cost reduction and profit
maximizing can be risky. Do not try to eliminate risks,
but use available risk management tools.
- Farm financial planning consulting is offered around the state to help farmers evaluate their financial conditions and risks. This consulting opportunity evaluates financial implications of changes on the farm. Contact your county extension office for more information.
Input costs can be reduced by seeing what options are available for all areas of production. Dale Farnham, ISU Extension agronomist, said, "There is no substitute for good old common sense. You pay the bills, so ask the questions, such as is this necessary and what are other options available. These questions should be asked every year, not just in crisis times."
In reducing or improving inputs, consider these suggestions:
- Shop around for elite hybrids and look at yield
trials to compare with other hybrids on the market.
Farnham said, "You get what you pay for with hybrids. The
elite hybrids can reap better yields, but you will pay
for it in the cost of the seeds."
- Biotech crops such as IMI and Bt corn and Roundup
Ready corn and soybeans are silver bullets but not magic
bullets. You need sense to apply this technology,
according to Rich Pope, ISU Extension integrated pest
management specialist.
- Look at the weed problem situation in each field and
through research see what is best for the economics of
the farm. Look at weed pressures and try to make
judgments based on what is available, not on
advertisements and what neighbors are using for weed
control.
- Tillage practices depend on the farm and fields. Look
for ways to help keep costs low in regard to chemicals
and weed pressures.
- Look at information available on fertilizers and make
reasonable decisions. "It is possible to reduce inputs by
conducting intensive soil sampling," Regis Voss, ISU
agronomist, said.
- Consider on-farm sources such as manure and legumes for soil fertility. Manure on the farm should be used judiciously, applied uniformly and incorporated, if possible, according to Voss. Corn following alfalfa seldom responds to additional nitrogen. With corn following soybeans, the nitrogen rates can be reduced.
For more information, call the Iowa Concern Hotline at 1-800-447- 1985 or visit your local ISU Extension County office. The hour long midday broadcast is available in Real Audio at http://www.extension.iastate.edu/Pages/markets/Monday.ram
ml: isufarm
Extension programs are available to all without regard to race, color, national origin, religion, sex, age, or disability.