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Crop producers urged to ‘minimize losses’

The financial situation facing crop producers for 2015 is considerably different from that of recent years.

Ag economist Tina Barrett, director of Nebraska Farm Business Inc., says the emphasis has gone from “maximizing profits” to “minimizing losses”.

“We need to take a step back and look at those choices that we’ve made over the last few years,” Barrett says. “(Things) that made sense with $7.00 corn that maybe don’t make sense anymore at $3.50. Stuff that adds five bushels to the acre, but costs 30 dollars, doesn’t work at the prices that we have now.

“So it’s better to go for that lower yield, even though that’s a tough thing to do for a producer.”

AUDIO: Tina Barrett

Cory Walters, University of Nebraska-Lincoln Extension crop economist, says one area of possible savings is crop insurance.

“Even though insurance will be cheaper next year, don’t necessarily buy up—but maybe buy down one coverage level or jump up to enterprise units—or somewhere where you can save a few dollars but still keep that protection if a really bad outcome occurs,” Walters says.

AUDIO: Cory Walters

Barrett and Walters were in Beatrice Monday for the first of five Cornhusker Economics Outlook meetings being held across the state in November.