News

Strategize ag inputs

A longtime ag economist with Purdue University says farmers need to scrutinize their input budgets in a down economy.

Mike Boehlje, professor emeritus, says systematically approaching input purchases can boost profitability.

“What we have tried to do is put together something we call the spec sheet, which is commonly used in other industries to worry about what they call procurement.”  He says, “We think that’s what we ought to be doing in farming operations.”

He says it’s a process that allows producers to look past product price and focus on overall value to the operation.

“Figure out exactly which one is going to be giving them the best product, service information, discount, delivery terms, technical documentation, etcetera, that they feel is important,” he says.

Boehlje tells Brownfield it makes the producer a more knowledgeable input buyer.

“Now is the time where we do really need to work with a broader set of people, if it’s possible they can provide you us alternatives and better meet our needs.”  He says, “This will allow a farmer to really get more detail in terms of what they’re really buying and what they’re paying for.”

Boehlje says communication with suppliers is key and increased analysis of inputs could lead to discovery of discounts or other benefits for the farming operation.

A link to the mentioned spec sheet can be found at HERE.

AUDIO: Mike Boehlje – Purdue University