Shane Goplin says he secured his crop inputs late last winter but worries about other farmers. “There are producers who waited to purchase fertilizer until they got the Farmer Bridge Assistance payment from the federal government. Now, they are kind of behind the eight ball and fertilizer prices are escalating rapidly. So yeah, there’s a lot of nervousness throughout farm country.”
Goplin’s only spring preparation regret so far? “I wish I would have had more fuel contracted for this year, so that’s a little nerve-racking.”
Goplin just returned from a trip to Washington D.C. with Illinois, Wisconsin, and Michigan corn growers, where they met with USDA Deputy Under Secretary for Trade and Foreign Agricultural Affairs Michelle Bekkering about how programs and policies are affecting farmers. “They were very receptive to what we are feeling, you know, (asking) what are we seeing with fertilizer? Prices are going up and (also for) diesel fuel. We were able to share our message.”
Goplin says they also visited the White House, where they thanked leaders for the Bridge Assistance program help, but it’s far from making farmers whole. “I made the analogy that if you had a $600 crop loan for inputs, at seven percent interest, that’s $42 an acre on interest for that year. That’s roughly what our bridge payment was. In other words, zero margin!”
Goplin raises about 700 acres of soybeans, 1200 acres of corn for grain, 350 acres of corn for silage, and about 500 acres of alfalfa for a neighboring dairy near Osseo, Wisconsin. He is also a member of the Wisconsin Corn Promotion Board.
EDITOR’S TAKE:
I believe Mr. Goplin was simply making the point that crop farmers are break even or perhaps underwater on their operating loans even with government payments. Of course, every business is concerned about rising costs, but the difference is farmers are price takers, not price makers. Most businesses have some ability to either switch suppliers to lower costs or raise prices to maintain some profitability. Farmers, on the other hand, are at the mercy of global market forces that determine prices for their commodities. And some farmers, if they waited too long to stockpile their inputs, are paying a steep penalty if they can even get the products they need. Not a very good predicament to be facing.
AgPack® can help! With nearly $50,000 in exclusive rebates and discounts, AgPack can help lower operating costs on products the farmers/ranchers use in their operations. If they are planning to replace one of their existing trucks, AgPack can help by increasing their Return on Truck Investment. Also, the government is strongly considering additional payments to offset the impact of current geopolitical events on the farmer/rancher. And don’t forget, if they have livestock in their operation, that is an entirely different conversation!
