Before planting next year’s crops, economists from the University of Georgia’s College of Agricultural and Environmental Sciences (CAES) recommend that Georgia’s farmers have a firm grasp on their production costs. Prices for diesel, some chemicals, and land rent have increased, while seed and fertilizer continue to be significant expenses. Their experts encourage farmers to be diligent in their record keeping and be aware of the impact these production cost changes along with low commodity prices can affect their bottom line.
“It’s good business practice to be on top of your numbers and ask, ‘Am I losing money with this crop? Can I afford to pay land rent on these acres?’” said Amanda Smith, a UGA Cooperative Extension economist in the CAES Department of Agricultural and Applied Economics. “If you can’t afford it, you may need to step away and look for an alternative.”
If you’re struggling with your farm finances, UGA agricultural economists have provided their own enterprise budgets that can be adjusted with your own cost estimates. You can access their budgets here and read more about their advice here.More From: University of Georgia
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