High input costs raise concerns for 2023

EVANSVILLE, Ind. — Dry weather has made quick work of harvest on the Kron family farm, where progress to finish the crop is being made each day.

Randy Kron, farmer and president of Indiana Farm Bureau, shared an update with AgriNews.

Q: How are yields coming along?

A: Our corn is probably in the average range on yields. We had two phenomenal years before this. But every year can’t be a record-breaker. Soybean yields are probably just a hair above average. We’re moving along and things are going well.

Q: How about prices?

A: We have good prices, and that helps. With all the high input costs, better grain prices help us turn a profit.

Q: How do you feel about 2023?

A: Next year worries me more because we don’t know what input prices will be. We couldn’t even get a price on anhydrous right now. Usually we’ll buy between now and the end of the year. They’re not willing to quote a price yet. It makes for a lot of uncertainty. But overall, it’s been a pretty good year and things are going well.

Q: Do you still think there’s variability across fields?

A: When you travel the state, there’s a lot of variability in yields. It just depends who got rain and who didn’t. It makes a world of difference this year.

Q: Is corn storage a concern this year?

A: In the southern part of the state, we export and a lot goes down the Mississippi River. With the river being low, getting barges through there is a concern. That’s important if you’re in the southern quarter of the state. Storage-wise, it depends. On an average crop, we come close to storing everything and then haul it in December, January and February.

The last couple of years, storage was probably a bigger issue because of larger crops. It depends if you have on farm storage or not, so it varies farm by farm. Without super big yields, it’s probably not as big of a concern this year. But we are concerned about exports on the river. If you’re used to better bids at the river terminal, those aren’t quite as strong right now.

Q: Any changes in store for 2023 acres or rotation?

A: It’s a little early to know, but we generally keep a 50/50 rotation with corn and soybeans. This year, beans fared a little better weather-wise. It helps hedge your risk to plant both. If Mother Nature is not kind to one crop, you have another to fall back on. But we’ll probably stay close to the ratio we’ve got.

The driver could be fertilizer prices and availability. If fertilizer prices are really outlandish, after already being crazy this year, that might make us step back and reevaluate.

Q: How are preparations going for the Indiana Farm Bureau State Convention?

A: The team is working hard and we’re looking forward to it. It’s coming up Dec. 15-17. We’re back in Indianapolis, which is exciting. We have a great lineup of speakers.

We’re doing an AgriConnect session on Friday, bringing agriculture and agribusinesses together, because we’re in this together. We need to work together.