Planning for Profits

Dec 02, 2021


Corn

Know your Cost of Production

With the 2021 season behind us our thoughts have turned to planning for 2022. Many of you started that thinking process during harvest and decided to buy/book and apply fall fertilizer. In general, fertilizer prices have remained strong throughout the fall with potentially more upside. Some supply concerns have made the news as well. We have worked hard with our suppliers to secure fertilizer tons for the remainder of the fall application season and to fill and re-fill our bins for spring application. Premier’s storage capacity is one of the largest in the area which helps lessen our dependence on shipments in the spring. Working with your local agronomist to plan your needs for spring will help us forecast product amounts and timing of those tons for application in the spring.

With the cards we have been dealt going into 2022, it is very important to KNOW YOUR COST OF PRODUCTION and find a commodity price that locks profit in. The simplest rules of economics are the ones that stand the test of time. The one I’m thinking of is “it’s hard to go broke making money.” Things to be considered to that statement are your combined input expenses such as: starter fertilizer, corrective fertilizer, seed, soil testing, fertilizer services (spreading, etc), scouting, weed control, insect control, fungus control, fuel, lubrication and energy costs, labor costs, repair/maintenance costs, land rents/ownership costs and interest and depreciation costs. When all these costs are calculated per acre, you have your cost of production. If that can be divided by an average yield and the price per bushel is less than what you can contract for, it makes sense to look at purchasing inputs at the current prices and lock in a bit of the output. Budgeting and knowing your costs will be extremely important in the farming game for 2022. The agronomy sales staff have several examples of budgets available for people to look at and would be happy to walk people through them with you.

 

Ken Jahnke

Sales Manager

 
 

Latest Posts

Jul 07, 2025
Crop and weather conditions are aligning for a potentially strong year, making this a season worth investing in. The majority of corn and soybean fields are showing excellent growth and yield potential. However, the consistently high relative humidity over the past few weeks has created ideal conditions, not only for crop development, but also for disease pressure, particularly tar spot. When tar spot reaches 50% severity on the ear leaf during grain fill, yield losses of 20-60 bu/ac have been reported. 
Jul 07, 2025

Farmers across southern Wisconsin are being urged to scout their fields following increased reports of true armyworm activity. Significant infestations have been confirmed in Grant, Iowa, Crawford, Dand Columbia, Jefferson, Dunn, and Taylor counties. Some fields—particulary those with grassy borders or weedy patches—are showing heavy feeding damage. 

Jul 01, 2025
I hope everyone had the chance to enjoy the Independence Day holiday with family and friends. Thanks to all of you who called in your orders early and helped minimize the added pressure that the short work week brings. I’d also like to thank all of you who returned your propane contracts by the due date. With a short window of when contracts are mailed to when they are due back, we really appreciate your patience and support. If reading this reminded you that your contract is still sitting on the kitchen table, just pick up the phone and call the energy office nearest to you. Our friendly staff will be glad to take care of you. On behalf of our energy team and everyone at your cooperative, thank you for choosing us to serve your propane needs again this year.