According to Bell Bank Senior Vice President of Agribusiness Development Lynn Paulson, 2021 was a decent year financially for many farmers despite the dry conditions. “Even producers with marginal yields probably did ok, partly due to increased commodity prices and production expenses that were somewhat reasonable,” says Paulson. The higher commodity prices were a combination of drought concerns, good demand and inflation. The corn market put in a top at more than $7, soybeans hit their high at more than $16 and spring wheat’s top was at more than $10. Northland Community and Technical College Farm Business Management Instructor Betsy Jensen says farmers are trying to get an idea of how much to forward contract for 2022. “There’s so much risk for next year. If we’re spending this much money on inputs, farmers must make money. Figure out your cost of production, what works in your cash flow and then, that makes marketing much easier.”
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