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10 Money-Saving Tips for 2014

With corn prices dropping to sub-$4 and the potential for $10 soybeans, it’s time to get creative. There is no one-size-fits-all-farmers answer, but there are numerous ways to more closely align costs with returns.

The good news is that some important inputs, such as fertilizer and fuel, are already coming down in cost. Other inputs, while not decreasing in price, are still too valuable to risk a cutback in yield. One of the best ways to cut costs can actually be a spike in yields.

We’ve called on several experts to offer their suggestions on trimming expenses on everything from the cost of money to minding the details.

Check back regularly, as three tips will be added each week!

interest rates

 1. Plan for Higher Interest Rates

In the light of tighter margins for 2014, you should position your farm so you are prepared for interest rates to increase.

 crop insurance

2. Don’t Skimp on Crop Insurance

One area farmers should not cut this year is crop insurance. In fact, producers should consider boosting coverage levels.


 3. Don’t Short-Change Your Farm on Safety

Whether you’re a grain grower expecting tighter margins or a dairy producer pushing milk production, be sure to keep farm safety precautions high on your priorities list this year.

 cost of production

 4. Know Your Production Cost

Knowing your cost of production not only helps you know where to trim expenses, but also when to lock in profit opportunities.


 5. Know Your Exact Fertilizer Needs

Consider ways to make application more efficient while recognizing that cutting too deep on inputs can raise costs.


 6. Evaluate Financial Returns on Cash Rents

It’s prudent to evaluate financial returns with and without high cash rent acres.


7. Right-Size Farm Machinery to Your Acreage

Options include limiting capital expenditures, running equipment longer hours and more.


8. Brush Up on Your Management Skills

During profitable years, it’s easy to let management get sloppy. But as times become more turbulent, it’s important to sharpen your skills.

 small stuff

 9. Sweat the Small Stuff

It’s not huge costs that make the difference, but small changes throughout the operation.

 family living

10. Shrink Family Living Expenses

In light of tighter margins, farmers should look at every line item to find possible areas to cut expenses.

(Source – http://www.agweb.com/news/10_moneysaving_tips_for_2014.aspx)

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