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Higher crop inputs make for risky business

Managing risk is getting riskier as input costs follow commodity prices higher.

Glenn Wachtler with Compeer Financial says seed, chemical, and fertilizer dealers need to make a living too.

“They see opportunity and the prices go up. However, that means there’s more risk out there to manage for our producers. And managing the grain prices and your marketing plan is only half of it. We really have to look at that input side too.”

And Wachtler says he feels for those who didn’t lock in inputs early.

“You can offset some of the risk and perhaps make a couple more dollars by really trying to stay on top of that.”

Wachtler made these comments during a recent What’s Happening with the Grain Markets podcast hosted by Compeer Financial.

Farm management analyst Kent Thiesse with MinnStar Bank in southern Minnesota says most dry fertilizer products have increased by 30 to 40 percent since November.  He tells Brownfield anhydrous and liquid N have risen more than 40 percent the past four months.