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Cutting costs on farmers’ minds

An agricultural economist at the University of Illinois says low farm incomes have farmers looking at ways to save.                    

Gary Schnitkey says income projections for the foreseeable future are not good.

“And in fact, we’re projecting some negative incomes from many farms,” he says.

He tells Brownfield applying nitrogen in accordance with university recommendations is one way to effect profitability.

“We see a lot of farms applying over 200 pounds per acre to 220 pounds per acre.”  He says, “The higher yields from those higher rates don’t cover the cost of that additional nitrogen.”

Schnitkey says all expenses should be closely monitored.

“Question whether all those fungicide sprays that we did in higher prices are warranted in these lower price environments,” he says.

Schnitkey spoke with Brownfield at the Greater Peoria Area Farm Show in Peoria, Illinois.