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Cash flow projections should include corn under $4

Farm management specialist Gary Schnitkey recommends working 2017 cash flow projections with a corn price under $4.

“It looks like we’re going to have a continuation of a low corn price for 2017,” Schnitkey told Brownfield Ag News Thursday.

A price in the mid-to-upper $3 range is prudent for this year, according to Schnitkey.

“We would suggest a $3.70 price for 2017,” he said.

Schnitkey suggests that cash flow projections include adjustments to machinery costs.

“We’ve seen machinery costs come down some over time, and machinery investments or new purchases of machinery, but looking at further cuts in that area probably are warranted,” said Schnitkey.

Soybeans might make up some of the shortfall resulting from low corn prices, said Schnitkey.

“Soybeans look to be more profitable again in 2017 than corn,” Schnitkey told Brownfield, “that’s given that we have near trend yields, and obviously we’re just beginning those key yield determination areas.”

Schnitkey’s corn price projections for 2018 are also for corn at about $3.70 a bushel.

AUDIO: Gary Schnitkey (6 min. MP3)

 

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