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Corn Farmers Urged to Eye Low Energy Prices for Drying Needs
Much of this year’s corn crop was planted record late. Unless there is an extended fall, you may have to dry corn that will have a high moisture content.
The possibility of increased energy usage to dry corn this harvest is real, and a cost that most farmers would like to forgo.
This extra cost is a factor that could reduce the net price for your corn.
Luckily, prices for both natural gas and propane are near historic lows. Consider locking in the price for your energy needs.
Trying to outguess a market can be emotional. When prices are in the very bottom edge of a price range throughout the last 19 years, a decision to purchase should be easier.
Yet, with low prices, end users do not have much incentive to pay attention to the markets, let alone spend money to lock in prices. While understandable, that emotional response can cost you in the end.
From the perspective of a farm manager, it is imperative to pay attention to low energy prices, as these are opportunities. Corn prices took a major hit, sliding over $1.00 since peaking in June. With harvest creeping closer every day, the need to manage costs becomes paramount.
As with any purchase, there will always be a sense of uncertainty. Your timing could be wrong, or you discover, with hindsight, making no decision would have been better.
Yet, with drying costs in a downtrend and the likelihood that demand could quickly outstrip supply as harvest begins, now is the time to take action and lock in drying costs. Waiting could be a financial mistake.
If you have comments or questions, contact Top Farmer at 800-TOP-FARMER, extension 129, and ask for Bryan Doherty.