Special Report

How much to make a profit?

Even though commodity prices are at record highs, they’re chased relentlessly by what it costs to raise them. In one year, the breakeven price for corn went from $4.40 a bushel to $5.20 a bushel, according to Darren Frye, a market consultant with Water Street Solutions.

“We have a shrinking margin this year,” Frye told Brownfield. “I think what farmers are going to have to do is sell their grain in a shrinking margin timeframe, which they haven’t been wanting to in the last couple of years, because they haven’t had to do that.”

As a result, Frye says farmers will either have to accept the smaller margin “or try to increase the margin through crop insurance and through increased production dropping that breakeven down and some of those other strategies that will add to it.”

AUDIO: Darren Frye (3 min. MP3)

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!