Is it too early to be discussing what will be planted or what will not be planted this upcoming year? Do you still plant for the big crop or do you cut costs and try to minimize potential loss? Will there be more summerfallow and will producers park air seeders? Lots of questions this year, lets hear some thoughts out there.
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I have always been a strong advocate for all out inputs to maximize yield. Proper fertilizer, miro-nutirents, and proper chemical weed control. This is the first winter I have questioned it. I am seriously considering some radical altenatives that I wouldn't have in the past. Good question.
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Near Calgary land rents are showing no sign of weakness yet. 65/acre for full 1/4 section seems to be the number. If you are not prepared to pay,some other person will. There is a lot of lip service from cash renters that rent is too high but no one will back down yet.
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South East Calgary is where my brother farms and can make the same comment.
Will note I have talked to farmers who continuous crop and they are looking at chem fallow this year. Has more to do with getting crop/herbicide rotations back into shape and deal with perenial weed issues as an effort to impact prices. May be a year to try a winter wheat next fall.
To put a market focus on the question, I would be following the extent of the shift in US acres from corn to soybeans.
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I would have a tough time justifying spending $65/ac chem time equipment dep to not even have the potential to make money in the year I farm it.
Farming seems to be a year to year business. To guarantee a loss for one of those years does not make sense to me.
That is the advantage to rented land. If it does not turn a profit than you can discontinue farming it. And find land that is a better fit.
There are alot of other factors that can also be considered, land location, business relationships, future opp to buy etc. When margins are as tight as they are for many farmers maybe we should focus more on short term profit year to year.
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