Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   

Agricultural News


New Rabobank Study Says Farmers Need to Manage Costs Aggressively to Up Their Odds of Economic Survival

Tue, 26 Jul 2016 05:27:41 CDT

New Rabobank Study Says Farmers Need to Manage Costs Aggressively to Up Their Odds of Economic Survival Years of negative margins have U.S. row crop farmers facing a bleak outlook, and Rabobank believes farmers must lower operation costs in order to survive.


A new report—Farming the Efficient Frontier: Crop Efficiency, Not Volume, Will Drive Future Financial Performance—by the Rabobank Food & Agribusiness Research and Advisory group, which reviews the current costs of inputs and land and the projected supply and demand of commodities, explores the outlook for U.S. farmers.


The findings show the need to adopt efficiency-driven, rather than volume-driven, strategies in order for farmers to maximize profitability in an environment of lower commodity prices and high seed and input costs.


“We forecast soybeans, the leading growth commodity, to see consistent export growth in the range of 150 million to 200 million bushels through 2020 (12 percent to 14 percent over the trailing 2015 three-year average), given the continued increase in Chinese animal protein demand,” notes report co-author and Rabobank senior analyst Sterling Liddell.


Many farmers find it difficult to maintain operating capital and credit with several consecutive years of negative income. And the report finds the next few years will be crucial for farmers’ existence.


“This leaves land, the largest single-expense item for producing the crop, as the primary focus for cost reduction,” said report co-author and Rabobank senior analyst Ken Zuckerberg.


Although the cost of inputs in 2016 have declined in comparison to the cost in 2015, the reduction wasn’t enough for positive margins, according to the report.


“In order to survive and thrive, farmers must adopt strategies that maximize bottom-line profit, rather than a simple focus on crop yield,” Zuckerberg said.




   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Friday, December 3, 2021, Market Wrap-Up with Justin Lewis  Fri, 03 Dec 2021 15:44:47 CST
  • USDA Awards Funds for Fiscal Year 2022 Market Development Programs   Fri, 03 Dec 2021 15:36:46 CST
  • Stabenow, Thune Applaud USDA's Announcement to Give Producers More Flexibility on Prevented Plant Acres  Fri, 03 Dec 2021 15:33:24 CST
  • Oklahoma Grain Elevator Cash Bids as of 2 p.m. Friday, December 3, 2021  Fri, 03 Dec 2021 15:31:32 CST
  • Consumers can Cut Utility Bills by Conserving Water at Home  Fri, 03 Dec 2021 15:27:28 CST
  • This Year's Tulsa Farm Show Has New Attractions While Keeping Old Favorites  Fri, 03 Dec 2021 15:17:34 CST
  • Producers and Industry Professionals Discuss the power of Genetic Data  Fri, 03 Dec 2021 12:53:33 CST
  • Cattle raisers urge straightforward labeling for lab-grown products   Fri, 03 Dec 2021 12:51:46 CST

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.
       

       
       

    Search OklahomaFarmReport.com

    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.