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Posted 20 June 2008. Crop Management. Wheat Profitability: Back to Basics Oklahoma State University. www2.dasnr.okstate.edu Stillwater, Oklahoma (June 6, 2008)--Wheat producers looking to remain profitable in the coming months likely will need to cut production costs, increase yields or both, taking care to ensure that all the basics of sound management are covered.
While it is likely that input prices will continue to be high into the foreseeable future, it is far less probable that the record-high crop prices of the 2007-2008 wheat production year will persist, said Jeff Edwards, Oklahoma Cooperative Extension Service small grains specialist. “Many producers will be tempted to slip into an automatic ‘cut production costs’ mode of thought, which is not always the most profitable option,” he said. “Basics such as quality seed, adequate fertility and a good weed control program are among the best investments a farmer can make. They should not be shortchanged or cut without justification.” Edwards said the key is to make informed decisions based on facts and not emotion. In other words, responding to dropping wheat prices by cutting fertilizer inputs by 50 percent across the board would be a bad move for most producers. However, cutting fertilizer costs by 50 percent on a field-by-field basis when soil tests and yield history justify the decision makes good economic and agronomic sense. Another way to cut production costs is to substitute management for capital. For example, avoid the expense of a fungicide application by learning about the disease package of current wheat varieties and planting those varieties that likely will not require applications. “Correctly identifying which weed species are present and choosing the correct herbicide program will help reduce costs and increase yield,” Edwards said. “Regularly scouting for insects and using integrated pest management strategies will likely reduce pesticide-related expenses.” While Edwards is a proponent of back-to-basics thinking, there is one class of inputs where he would consider across-the-board cuts: experimental or unproven products. “I’m all for experimentation and there is usually no harm in trying a few acres of a new product, but the old axiom of ‘try before you buy’ is generally sound management,” he said. “When profit margins are tight, a producer really has to make every dollar count.” Practical wheat management tips and techniques are available through all Oklahoma State University Cooperative Extension county offices and the OSU department of plant and soil sciences newsletter at www.pss.okstate.edu/extension on the Internet. Contact: |
