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Missouri farmer prepares for tighter margins

After three very profitable years in a row, farmers are looking at much tighter margins in 2014.  Mitchell Corbin, who farms near Mound City, Missouri, says he’ll have to sharpen the pencil to stay profitable.

“We could possibly be looking at some breakeven prices, or possibly even below.  It’s going to take some management on my part from the marketing side to manage margins,” Corbin says. “I’ve already forward sold some corn for next year, trying to manage margins and offset the cost of inputs that we’ve had to pre-purchase.”

Corbin says lower fertilizer prices will help, “but it will be thinner than it’s been—and I’m afraid at times the prices offered will actually offer a negative margin.”

As for this year, Corbin says he has about 25 percent of his corn left to harvest.  He describes corn yields in his area of northwest Missouri as slightly above average, and about average for soybeans.  But considering the year, Corbin says, that’s okay.

AUDIO: Mitchell Corbin (6:53 MP3)