Looking ahead to 2022, Bell Bank Senior Vice President Lynn Paulson says profitability will be squeezed as expenses go up and revenue flattens. “Input expenses are probably going to increase seven-to-ten percent. Fertilizer prices are up significantly. Other inputs are tied to crude oil and everything is affected by the supply chain.” Farmers must know their cost of production and understanding how that fits into a longer-term plan. “I was working on an outlook for a 2,000 acre producer that has half corn and half soybeans. Doing scenario planning and taking a few dollars off corn or soybeans with normal yields, you take $500,000 out of revenue. That’s a lot. Having a plan is very critical to handling the ups and downs of what might be coming.”
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