Lots to consider when planning ag financial management strategies

Kent Thiesse

Projected crop production revenue margins for many producers in 2022 are likely to be significantly tighter as in contrast to 2021 margins.

Crop revenues for several producers will probably carry on to be fairly powerful in the coming calendar year. Having said that, fees for crop inputs, these as fertilizer, chemical substances, fuel, repairs and labor are probable to boost substantially in 2022. Commodity prices and gross income per acre for corn and soybean generation improved significantly in the course of the 2021 crop year, which is a pattern that is most likely to continue this year.

The gain margins in the livestock sector also enhanced in 2021 but are also likely to slender in 2022 due to elevated output fees.

Credit rating availability for agriculture ought to remain good for farm enterprises that are on a sound fiscal base. Having said that, both of those shorter-phrase and very long-expression desire charges are possible to start off mounting throughout 2022.

Minnie Arwood

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