Special Report

Producers struggle with shrinking profit margin

A scant year ago, once the corn market hit $4.40 a bushel, farmers could make a profit. This year, steep input costs have jacked up the break-even price to $5.20. “We have a shrinking margin this year,” said Darren Frye, president and CEO of Water Street Solutions, referring specifically to corn. “What farmers are going to have to do is to sell their grain in a shrinking margin time frame, which they haven’t been wanting to do in the last couple of years because they haven’t had to,” Frye told Brownfield Ag News, at his booth at the Commodity Classic. Farmers, added Frye, will have to increase margins through crop insurance or increased production.

Darren Frye (3 min. MP3)