Crop costs are set and in the ground.

As seeds are placed in the ground and even our second pass with herbicides and nutrients are over do you know what your crop has already cost you? If not I recommend you take a hard look at your inputs thus far in this growing season. Input costs are largely set with the exception of harvest for corn as well as many of your other crops. Getting a handle on what your total cost in the field is will be crucial for setting a breakeven price for your crop. Many costs from this point on are easily estimated due to past costs associated with the particular crop. The only variable that cannot be accounted for is weather and thus yield, which will make a tremendous difference in breakeven. From this point on we will keep one eye on the growing crop and one eye on the past production we have seen to try to come to a sound estimate on this year's yield potential. As you hone in on your yield marketing decisions can be made and executed only when you have a firm grasp on the dollars already invested in the crop and the dollars it will take to harvest and transport it.

Even for those of you who don't sell your crops but utilize them on your farm this is a very important time to focus costs. You now have in the ground a significant portion of your feed costs for next year to set a break even on your products you will be shipping off farm. Utilize the dollars spent now to start finding the price points to identify in futures that could keep you profitable.

It is still too early to have a clear picture of what price options we will have during and after this growing season. As we gather and interpret information now the more prepared we will be to make the decisions we need to later in the season to secure profit and/or minimize losses.