Supplier says half of his farmers have inputs locked in

An input supplier says farmers were shell shocked by input prices and product availability since the pandemic, so supply and profitability are top of mind going into 2023.

Craig Oehmichen with Short Lane Farm Supply says the input supplies and prices have been good when current grain prices and the cost of production are considered. “Things are definitely skidding on the chemical side and on the fertilizer side, but you know, it’s a long time until spring and like I said, the profit levels are still there for people that had bought early to secure product, but I mean, they’re still going to be fine as long as they got grain priced.”

Oehmichen tells Brownfield about half of his clients have already locked in their crop inputs for 2023, which is more than usual. 

And, he says some product prices and availability are much different than others. “There seems to be plenty of Roundup at the moment. As far as fertilizers, urea & potash are probably going to be the two softest ones in my opinion. The phosphates and anything containing sulfur probably are near the bottom and are about as cheap as they’re going to get.”

Oehmichen says he is concerned about farmers who have locked in their inputs but have not yet priced grain to ensure their profitability.

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